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Category - Economics

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If the demand for product X goes up, will the demand for the substitution product Y go up or down?
  1. The demand for product Y will go up.
  2. The demand for product Y will go down.
  3. The demand for product Y is unaffected.
  4. There is not enough information to answer.
Explanation
Answer: B - If the demand for product X goes up, demand for the substitution product Y will go down. Substitution goods are bought in lieu of each other. For instance, if people start buying more Coca-Cola, they will probably buy less Pepsi.
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