If the price of chocolate-covered peanuts increases and the demand for strawberry licorice twists increases, this indicates that these two goods are:
A) complementary goods.
B) normal goods.
C) inferior goods.
D) substitute goods.

Question

Quizplus · Accepted Answer

When the price of chocolate-covered peanuts increases and the demand for strawberry licorice twists increases, it suggests that consumers are switching from peanuts to licorice twists, indicating that they are substitute goods.

If the Price of Chocolate-Covered Peanuts Increases and the Demand