If an increase in the price of good X leads to an increase in the consumption of good Y,then goods X and Y are called:
A) substitutes.
B) complements.
C) normal goods.
D) inferior goods.

Question

Quizplus · Accepted Answer

When the price of good X increases, consumers may choose to buy a substitute good Y instead of X. This implies that the two goods are substitutes. For instance, if the price of coffee (good X) increases, consumers may opt to buy tea (good Y) instead.

If an Increase in the Price of Good X Leads