If two goods (A and B) produced by a single firm are substitutes in consumption, then the change in total revenue from the sale of B divided by the corresponding change in the quantity of A will be positive.

Question

Quizplus · Accepted Answer

If two goods are substitutes, an increase in the sales of one (due to its increased attractiveness, reduced price, etc.) typically leads to a decrease in the sales of the other, not an increase in total revenue from the substitute good.

If Two Goods (A and B) Produced by a Single