Two goods are substitutes if an increase in the price of one good leads to an increase in demand for the other.

Name: Two goods are substitutes if an increase in the price of one good leads to an increase in demand for the other.
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Question

Quizplus · Accepted Answer

This is the definition of substitutes. If the price of one good increases, then consumers will look for a similar good to substitute it with, leading to an increase in demand for the substitute.

Two Goods Are Substitutes If an Increase in the Price