Suppose that when the price of raspberries increases, Lonnie increases his purchases of papayas.To Lonnie,
A)raspberries and papayas are complements.
B)raspberries and papayas are inferior goods.
C)raspberries and papayas are normal goods.
D)raspberries and papayas are substitutes.

Question

Quizplus · Accepted Answer

When the price of raspberries increases and Lonnie increases his purchases of papayas, this indicates that raspberries and papayas are substitutes. Lonnie is substituting raspberries with papayas because their prices have increased.

Suppose That When the Price of Raspberries Increases, Lonnie Increases