There are two universities,A and B,in a city.Tuition rises at University A and,as a result,the demand for attending University B rises.It follows that educational services at the two universities are
A) complements.
B) normal goods.
C) inferior goods.
D) substitutes.
E) none of the above

Question

Quizplus · Accepted Answer

When the tuition rises at University A, students may look for alternatives and University B becomes a substitute for University A. Therefore, educational services at the two universities are substitutes.

There Are Two Universities,A and B,in a City