If two goods are substitute goods,
a. an increase in the price of one will cause a decrease in the
demand for the other. b. an increase in the price of one will cause
an increase in the demand for the other. c. the price elasticity of
demand for both goods will be greater than 1.
d. the price elasticity of demand for both goods will be less than
1.
"B"
IF two goods are substitute then an increase in the price of that good will decrease the demand for that good and increase the demand for the other as the other good will be cheaper and can be used in place of the other. The answer is "B".
If two goods are substitute goods, a. an increase in the price of one will cause...