If the price of tangerines increases,the price of oranges also rises because
A) consumers consider the two goods complements and so sellers decreased the supply of oranges.
B) consumers consider the two goods substitutes and demand for oranges increases.
C) if the supply of tangerines decreased, then the supply of oranges also must decrease.
D) buyers must have expected a higher price for oranges and thus increased their demand for oranges.
E) buyers' incomes must have decreased and oranges are an inferior good.

Question

Quizplus · Accepted Answer

When the price of tangerines increases, consumers may choose to switch to buying oranges instead, viewing them as substitutes. This will increase demand for oranges and cause the price of oranges to rise as well.

If the Price of Tangerines Increases,the Price of Oranges Also