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4. If a decrease in the price of one product results in an increase in demand for another product, then the product is:

User Mellowsoon
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Answer:

Substitute goods

Step-by-step explanation:

Substitutes goods are products that can be used in place of one another. Consumers will be happy consuming either of the substitute goods. Therefore, substitute goods are similar and offer solutions to similar customer problems. Examples of substitute goods are tea and coffee.

If the price of one substitute good decreases, its demand will rise. Customers will prefer consuming that product over its substitutes due to its lower prices. The demand for other substitute goods will decrease as customers prefer the more affordable options.

User Rob Fyffe
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