Two goods are substitutes when a decrease in the price of one good a. decreases the quantity demanded of the other good. b. increases the quantity demanded of the other good. c. decreases the demand for the other good. d. increases the demand for the other good. Question Workspace You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be a. an inferior good. b. a substitute good. c. a normal good. d. a complementary good.
Added by Gregory W.
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Substitute goods are those that can replace each other in consumption. If the price of one good decreases, consumers will likely buy more of that good and less of its substitute. Therefore, a decrease in the price of one good will decrease the quantity demanded of Show more…
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