Two goods,X and Y,are called substitutes if A) an increase in P_X causes more Y to be bought. B) an increase in P_X causes less Y to be bought. C) an increase in P_Y causes less Y to be bought. D) an increase in income causes more of both X and Y to be bought.

Question

Quizplus · Accepted Answer

Substitute goods are those where an increase in the price of one leads to an increase in the demand for the other.

Two Goods,X and Y,are Called Substitutes If