Final answer:
With substitute goods, an increase in the price of good X will likely cause consumers to buy more of good Y, as they look for alternatives. The effect of this change depends on personal preferences and market conditions like taste shifts, population changes, and income variations.
Step-by-step explanation:
When considering substitute goods, if the price of good X increases, consumers will likely buy more of good Y. This is because substitute goods are alternatives that consumers can turn to when the price of another relevant good changes. For instance, if the price of coffee (good X) rises, consumers might buy more tea (good Y) if they view these drinks as substitutes for each other.
Several factors can affect this substitution effect, such as a taste shift to greater popularity of good Y, an increase in the population likely to buy good Y, an increase in income (for a normal good), and, of course, an increase in the price of substitutes like good X. Conversely, if the income drops, which is relevant for a normal good, or if there's a taste shift to lesser popularity for good Y, the quantity demanded for good Y might decrease.
In summary, the price elasticity of demand for both goods depends on personal preferences, the degree to which goods are considered substitutes, and various market conditions that can affect consumer behavior.