If the quantity of Arizona green teas demanded falls from 4.0 million to 3.0 million as the price of Lipton green teas falls from $2.70 to $2.50, Arizona's teas and Lipton's teas are:
A) substitutes.
B) complements.
C) luxuries.
D) inferior goods.

Question

Quizplus · Accepted Answer

When the price of Lipton green teas falls and the quantity demanded for Arizona green teas decreases, it indicates that consumers are switching from Arizona to Lipton, suggesting that these two goods are substitutes.

If the Quantity of Arizona Green Teas Demanded Falls from 4.0