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Does the income level of a person change their view of substitute goods?

Does the income level of a person change their view of substitute goods?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Does the income level of a person change their view of substitute goods?

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Step 1

Two goods are substitutes of each other if both can be used in place of another. Similar and comparable goods are substitutes, thus having more of one good causes the consumer to desire less of the other good.

Step 2

A consumer can demand more of a good if the price of substitutes of that good increases. For example, let X and Y are substitutes and Px is the price of good X and Py is the price of good Y, and due to some market forces price of good X increase. This increase in the price of good X leads the consumer to consume more of good Y and less of good X.

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