Two goods,X and Y,are called substitutes if
A)an increase in PX causes more Y to be bought.
B)an increase in PX causes less Y to be bought.
C)an increase in PY 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

Substitutes are goods that can replace each other. If the price of good X (PX) increases, consumers will buy more of good Y as an alternative, indicating that X and Y are substitutes.

Two Goods,X and Y,are Called Substitutes If