if the price of commodity X rises and consumers shift to commodity Y, then commodity...
ECONOMICS
WAEC 2018
if the price of commodity X rises and consumers shift to commodity Y, then commodity X and Y are?
- A. substitutes
- B. complements
- C. inferior goods
- D. bought goods
Correct Answer: A. substitutes
Explanation
Substitute goods or substitutes are at least two products that could be used for the same purpose by the same consumers. If the price of one of the products rises or falls, then demand for thesubstitute goods or substitute good (if there is just one other) is likely to increase or decline.Substitute goods or substitutes are at least two products that could be used for the same purpose by the same consumers. If the price of one of the products rises or falls, then demand for thesubstitute goods or substitute good (if there is just one other) is likely to increase or decline.
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