The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-If the demand for product R increases as the price of product S increases, then _____.
A)consumer preferences for S have increased
B)R and S are not related goods
C)R and S are substitutes
D)R and S are complements
E)R is an inferior good

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-If the demand for product R increases as the price of product S increases, then _____.
A)consumer preferences for S have increased 
B)R and S are not related goods 
C)R and S are substitutes 
D)R and S are complements 
E)R is an inferior good

Quizplus · Accepted Answer

If the demand for product R increases as the price of product S increases, it means that R and S are substitutes. When the price of S increases, consumers switch to buying more of R as an alternative.

The Figure Given Below Shows the Demand Curves for Five