Figure 6-8

-Refer to Figure 6-8.Identify the two goods which are substitutes.
A)Good X and Good Y
B)Good Y and Good Z
C)Good X and Good Z
D)It is not possible to distinguish any relationship among the goods.

Question

Figure 6-8
 
-Refer to Figure 6-8.Identify the two goods which are substitutes.
A)Good X and Good Y 
B)Good Y and Good Z 
C)Good X and Good Z 
D)It is not possible to distinguish any relationship among the goods.

Quizplus · Accepted Answer

Substitute goods are those that can replace each other. If the demand for one increases when the price of the other increases, they are substitutes. The figure likely shows such a relationship between Good X and Good Z.

Figure 6-8 -Refer to Figure 6-8.Identify the Two Goods Which Are Substitutes