If the price of one good increases, and as a result the demand for another good increases, the goods are
A) substitutes.
B) normal goods.
C) complements.
D) inferior goods.

Question

Quizplus · Accepted Answer

When the price of one good increases, the demand for its substitute increases as consumers switch to the substitute good since it becomes relatively cheaper than the initial good. This implies that the goods are substitutes.

If the Price of One Good Increases, and as a Result