Final answer:
When two goods are substitutes, an increase in the price of one leads to an increased demand for the other, reflecting a consumer's preference for the cheaper option.
Step-by-step explanation:
If two goods are substitutes, as the price of one rises, the demand for the other increases and vice versa. This is because substitutes are goods that can be used in place of one another; consumers may choose to purchase the less expensive option when the price of one substitute increases. For example, if the price of tablets decreases, consumers might purchase more tablets in place of laptops, leading to a decrease in demand for laptops. Similarly, if the price of a good like a tablet were to increase, we would expect the demand for a substitute good like laptops to increase. This concept is captured by Cross-Price Elasticity of Demand, which measures the responsiveness of the quantity demanded of one good to a change in the price of another good.