If a 20 percent increase in the price of one good leads to a 10 percent increase in the quantity demanded of another good at a specific price, the goods are:
A) substitutes.
B) normal.
C) inferior.
D) complements.

Question

Quizplus · Accepted Answer

When the price of one good increases and as a result, the demand for another good also increases, the two goods are said to be substitutes. This is because consumers will switch to the substitute good as it becomes relatively cheaper compared to the initial good.

If a 20 Percent Increase in the Price of One