Two products are substitutes if:
A) an increase in the price of one causes buyers to demand less of the other.
B) an increase in the price of one causes buyers to demand more of the other.
C) a decrease in the price of one causes buyers to demand more of the other.
D) individuals consume the goods together.

Question

Quizplus · Accepted Answer

Substitute goods are those that can replace each other in consumption. When the price of one substitute product increases, consumers are likely to demand more of the other substitute product, as it becomes a more attractive option due to its relatively lower price.

Two Products Are Substitutes If