Question

Suppose that when the price of oranges decreases, Sarita decreases her purchases of peaches. To Sarita oranges and peaches are complements. oranges and peaches are normal goods. oranges and peaches are inferior goods. oranges and peaches are substitutes.

Answer 1

A substitute, or substitutable good, in economics and consumer theory refers to a product or service that consumers see as essentially the same or similar-enough to another product. Put simply, a substitute is a good that can be used in place of another.

If a reduction in the price of one good reduces the demand for another, the two goods are called substitutes.

So here the answer is  when the price of oranges decreases, Sarita decreases her purchases of peaches.

(Ans) To sarita oranges and peaches are substitutes.

As far as oranges and peaches are considered ,these two are substitutes .They satisfies the same needs of the consumer.So we can say that they are substitutes