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Goods X and Y Are Substitute Goods

Question 13

Multiple Choice

Goods X and Y are substitute goods. If the demand for good X increases, the price of good X will _____ and cause a(n) _____ in the demand for good Y. The _____ price for good Y will further _____ the demand for good X, while the _____ price for good X will further _____ the demand for good Y.


A) increase; increase; higher; increase; higher; increase
B) increase; increase; lower; decrease; lower; decrease
C) decrease; decrease; lower; decrease; lower; decrease
D) increase; increase; lower; increase; higher; increase

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