Two goods are considered substitutes 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

When the price of one substitute good increases, consumers tend to buy more of the other substitute good, increasing its demand.

Two Goods Are Considered Substitutes If