Two goods are considered substitutes only if
A) a decrease in the demand for one leads to a decrease in the supply of the other
B) an increase in the demand for one leads to a decrease in the supply of the other
C) an increase in the price of one leads to an increase in the demand for the other
D) a decrease in the price of one leads to an increase in the demand for the other
E) a decrease in the supply of one leads producers to switch to production of the other

Question

Quizplus · Accepted Answer

Substitute goods are those where an increase in the price of one good leads to an increase in the demand for the other, as consumers switch to the cheaper alternative.

Two Goods Are Considered Substitutes Only If