When an increase in the price of one product causes an increase in the demand for another, the goods are:

[1 mark]

Substitutes

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Complementary

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Inferior

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Giffen

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Substitutes
If the price of a commodity and the demand for its related goods increase, it means that they can be used in place of each other, that is they are substitutes.

Suggest Corrections

Similar questions

In which of the following goods, increase in the price of one causes an increase in demand of another?

If a 7% increase in the price of good-X causes a 7% increase in the expenditure on good-X, then the price elasticity of demand = 1.

An increase in the demand for a good will cause

If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to _____.

Join BYJU'S Learning Program