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People buy more of good 1 when the price of good 2 rises. These goods are. A. normal goods B. complements C. substitutes D. inferior goods

Question

People buy more of good 1 when the price of good 2 rises. These goods are. A. normal goods B. complements C. substitutes D. inferior goods
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Solution 1

The answer is C. substitutes.

Here's why:

When the price of Good 2 rises, people switch to buying more of Good 1 because they see it as a similar or suitable alternative. This behavior indicates that Good 1 and Good 2 are substitutes for each other. If they were complements, a price increase in Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.

Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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