The prices of substitute goods tend to be ____________.
A)positively correlated.
B)inversely related.
C)unrelated.
D)related to the prices of substitute goods.

Question

Quizplus · Accepted Answer

Substitute goods are products that can be used in place of each other. When the price of one substitute good increases, consumers are likely to switch to the other substitute, increasing its demand and potentially its price. Therefore, the prices of substitute goods tend to be positively correlated.

The Prices of Substitute Goods Tend to Be ____________