People buy more of good 1 when the price of good 2 rises. These goods are

Name: People buy more of good 1 when the price of good 2 rises. These goods are
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the price of good 2 rises and people buy more of good 1 instead, it indicates that goods 1 and 2 are substitutes. This is because consumers switch to good 1 as a replacement for good 2 due to the increase in price, suggesting that they serve similar purposes or satisfy similar needs.

People Buy More of Good 1 When the Price of Good