Two Goods Are Considered Substitutes If

question 129

Multiple Choice

Two goods are considered substitutes if

• A) a decrease in the demand for one leads to a decrease in the supply of the other.
• B) an increase in the demand for one leads to a decrease in the supply of the other.
• C) an increase in the price of one leads to an increase in the demand for the other.
• D) a decrease in the price of one leads to an increase in the demand for the other.
• E) a decrease in the supply of one leads producers to switch to production of the other.

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Definitions:

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