asked 28.9k views
1 vote
When two goods are substitutes, a change in the price of one will cause a change in the demand for the other in the ________ direction.

asked
User Buzut
by
8.4k points

1 Answer

3 votes

Answer:

In the same direction

Step-by-step explanation:

A substitute good is a good that can be used in place of another. Also, substitutes are goods that a consumer perceives as similar or comparable, so that having more of one good causes the consumer to desire less of the other good.

However ,in terms of the changes in price of the substitute goods, as the price of one good rises, the demand for the substitute good increases. For example, if the price of coffee increases, consumers may purchase less coffee and more tea.

answered
User EvilAsh
by
8.5k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.