The distinction between substitutes and complements is a. substitute goods are used together while complementary goods are used for the same purposes. b. when income increases, demand for a complementary good decreases while demand for a substitute good increases. c. substitute goods are used for the same purposes while complementary goods are used together. d. when income increases, demand for a substitute good increases while demand for a complementary good falls.

C. substitute goods are used for the same purposes while complementary goods are used together

Explanation:

Substitute goods are goods that can be used in place of another good because they serve the same purposes. For example, butter and margarine can be substitutes. If the price of butter increases, the demand for butter falls and consumers shift to consuming margarine.

Complementary goods are goods that are consumed together. For example, gasoline and car are complementary goods. If the price of car falls, the demand for gasoline rises.

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