If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when the price of shirts increases from $8 to $12, then, for you, shoes and shirts are considered:
A) inferior goods.
B) superior goods.
C) substitute goods.
D) complementary goods.

Question

Quizplus · Accepted Answer

The increase in the price of shirts has led to an increase in the demand for shoes, indicating that shoes and shirts are substitute goods. As the price of shirts increases, people are more likely to switch to buying more shoes instead. Therefore, the answer is option C - substitute goods.

If Your Purchases of Shoes Increase from 9 Pairs Per