JAMB - Economics (1981 - No. 30)
An increase in the price of butter causes an increase in the demand for margarine. This indicate that butter and margarine are?
substitute goods
complementary goods
elastic goods
inelastic goods
inferior goods
Paaiškinimas
A substitute good is a good that can be used in place of another. In consumer theory, substitute goods or substitutes are products that a consumer perceives as similar or comparable, so that having more of one product makes them desire less of the other product. Formally, X and Y are substitutes if, when the price of X rises, the demand for Y rises.