If an increase in the price of one good causes buyers to demand more of another good,then the two goods are:
A) normal goods.
B) inferior goods.
C) substitutes.
D) complements.

Question

Quizplus · Accepted Answer

When the price of one good increases and buyers demand more of another good, it indicates that the two goods are substitutes. This is because consumers switch to the substitute good as a replacement when the price of the original good becomes too high.

If an Increase in the Price of One Good Causes