If the price of chocolate-covered peanuts increases and the demand for strawberry licorice twists increases, this indicates that these two goods are:
A) unrelated goods.
B) superior goods.
C) inferior goods.
D) substitute goods.

Question

Quizplus · Accepted Answer

An increase in the price of chocolate-covered peanuts would prompt consumers to switch to cheaper alternatives, which in this case would be strawberry licorice twists, indicating that these two goods are substitutes.

If the Price of Chocolate-Covered Peanuts Increases and the Demand