If the price of good X increases and this causes an increase in the demand for good Y, then goods X and Y are substitute goods.

Name: If the price of good X increases and this causes an increase in the demand for good Y, then goods X and Y are substitute goods.
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Question

​If the price of good X increases and this causes an increase in the demand for good Y, then goods X and Y are substitute goods.

Quizplus · Accepted Answer

This is the definition of substitute goods: when the price of one good increases, consumers switch to a similar good, leading to an increase in demand for that good.

​If the Price of Good X Increases and This Causes

If the Price of Good X Increases and This Causes