Suppose that the price of Product A increased from $9 to $11 and the quantity demanded of Product B increased from 192 to 208.What can be said about the products?
A)They both have elastic demands.
B)They both have inelastic demands.
C)They are inferior products.
D)They are complementary products.
E)They are substitute products.

Question

Quizplus · Accepted Answer

The increase in price of Product A leading to an increase in quantity demanded for Product B suggests that the two products are substitutes. This means consumers switch to buying more of Product B when Product A becomes more expensive.

Suppose That the Price of Product a Increased from $9