Suppose that when the price of oranges decreases,the Sarita decreases her purchases of peaches.To Sarita,
A)oranges and peaches are complements.
B)oranges and peaches are inferior goods.
C)oranges and peaches are normal goods.
D)oranges and peaches are substitutes.

Question

Quizplus · Accepted Answer

When the price of oranges decreases, Sarita decreases her purchases of peaches, which indicates that oranges and peaches are substitutes. In other words, Sarita switches from buying peaches to buying oranges, as both are similar in nature and can be used as substitutes for each other.

Suppose That When the Price of Oranges Decreases,the Sarita Decreases