Suppose that one observes that,when the price of peanut butter increases,the demand for crackers increases.One must conclude that
A) peanut butter and crackers are complements.
B) peanut butter and crackers are substitutes.
C) peanut butter and crackers are normal goods.
D) peanut butter and crackers are inferior goods.
E) peanut butter and crackers are superior goods.

Question

Quizplus · Accepted Answer

When the price of peanut butter increases and the demand for crackers increases, it suggests that consumers are substituting crackers for peanut butter, indicating that they are substitutes.

Suppose That One Observes That,when the Price of Peanut Butter