Question

If the demand for good Y increases as the price of another good rises, how are the two goods related?

Answer 1

If the demand for good Y increases as the price of another good increases, then the two goods are substitute goods. Substitute goods are those that can be used in place of each other (e.g., tea and coffee, butter and margarine). When the price of one good rises, consumers tend to switch to its substitute, increasing its demand.