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
Correct Answer: A
Explanation
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.
