if an increase in the price of soft drinks leads to an increase in demand for bottled water, the two goods…

if an increase in the price of soft drinks leads to an increase in demand for bottled water, the two goods must be\na. complements\nb. substitutes\nc. independent\nd. unrelated.

if an increase in the price of soft drinks leads to an increase in demand for bottled water, the two goods must be\na. complements\nb. substitutes\nc. independent\nd. unrelated.

Answer

Brief Explanations:

When the price of one good (soft - drinks) increases and the demand for another good (bottled water) increases, they are substitutes. Substitute goods are those where an increase in the price of one leads consumers to switch to the other, increasing its demand.

Answer:

B. substitutes