If the price of apples goes down, then the demand for pears will
A) increase, assuming apples and pears are substitutes.
B) decrease, assuming apples and pears are substitutes.
C) decrease, assuming apples and pears are complements.
D) remain constant, assuming apples and pears are related goods.

Question

Quizplus · Accepted Answer

If apples and pears are substitutes, a decrease in the price of apples will lead to a decrease in the demand for pears, as consumers will prefer the cheaper substitute.

If the Price of Apples Goes Down, Then the Demand