Good X and good Y are substitutes.If the price of good Y increases,then the

Question

Quizplus · Accepted Answer

Since good X and good Y are substitutes, an increase in the price of good Y will lead consumers to switch to good X, resulting in an increase in the demand for good X. Therefore, option C is the correct answer. Option A is incorrect because an increase in the price of good Y would lead to a decrease in the demand for good Y, which in turn would result in an increase in the demand for good X. Option B is incorrect because there is no reason to believe that the market price of good X would decrease just because the price of good Y has increased. Option D is incorrect because an increase in the quantity demanded of good X would only occur if there is a decrease in its price, which is not stated in the question.

Good X and Good Y Are Substitutes