If the price of commodity X rises and consumers shift to commodity Y, then commodities X and Y are

  • A substitutes
  • B complements
  • C inferior goods
  • D bought together

The correct answer is A. substitutes

Substitutes goods are goods that perform the same or similar function. Increase in the price of one results to increase in the quantity demand for the other. Example is lux and joy soaps, if the price of lux soap increases, then the demand for joy soap will increase since they have direct relationship.

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