Suppose that when the price of raspberries increases, Lonnie increases his purchases of papayas. To Lonnie raspberries and papayas are:
A)complements.
B)inferior goods.
C)normal goods.
D)substitutes.

Question

Quizplus · Accepted Answer

Lonnie's behavior indicates that raspberries and papayas are substitutes, as he increases his purchases of papayas when the price of raspberries increases. When two goods are substitutes, an increase in the price of one good leads to an increase in the demand for the other good.

Suppose That When the Price of Raspberries Increases, Lonnie Increases