WBCS.LIVE practice question

If goods A and B are substitutes, a decrease in the price of good B will:

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Decrease demand for good B
  2. Decrease demand for both the goods
  3. Increase demand for both the goods
  4. Decrease demand for goods A

Correct answer and explanation

Correct answer: Decrease demand for good B