Since the price of walnuts increases as the demand for cashews increases, we can assume that these two goods are:
A) unrelated.
B) superior.
C) inferior.
D) substitutes.

Question

Quizplus · Accepted Answer

When the demand for cashews increases, leading to an increase in the price of walnuts, it suggests that walnuts and cashews are substitutes. As people demand more cashews, they may switch from walnuts, causing the price of walnuts to rise due to decreased supply or increased demand for walnuts as an alternative.

Since the Price of Walnuts Increases as the Demand for Cashews