If an increase in the price of coffee leads to an increase in the demand for tea, then coffee and tea are likely to be

Question

Quizplus · Accepted Answer

When an increase in the price of one good leads to an increase in the demand for another good, the two goods are considered substitutes. In this case, an increase in the price of coffee leads consumers to switch to tea instead, indicating that coffee and tea are substitutes.

If an Increase in the Price of Coffee Leads to an Increase