If tea and coffee can be used in place of one another, then which of the following statements hold true?

(A) Increase in price of tea leads to decrease in demand for coffee.
(B) Increase in price of tea leads to increase in demand for coffee.
(C) Tea and coffee are substitute goods.
(D) Decrease in price of tea leads to increase in price of coffee.
(E) Tea and Coffee are complimentary goods.

Choose the correct answer from the options given below :

(B) and (C) only

The correct statement is: (B) and C) only

(A) Increase in price of tea leads to decrease in demand for coffee:Incorrect statement. Increase in price of tea will result in increase in demand of coffee as tea and coffee are considered as substitute goods.
(B)Increase in price of tea leads to increase in demand for coffee:: Correct statement. As tea becomes more expensive, coffee becomes relatively cheaper and more attractive to consumers, leading to increased demand.
(C) Tea and coffee are substitute goods:This statement is true. Since they can be used as replacements for each other, they are considered substitutes.
(D) Decrease in price of tea leads to increase in price of coffee: This statement is unrelated to the relationship between tea and coffee as substitute goods. The prices of substitute goods are generally influenced by changes in demand and supply conditions for each specific good, not by changes in the price of the other substitute.
(E) Tea and Coffee are complimentary goods:This statement is not true. Complimentary goods are consumed together, where an increase in demand for one leads to an increase in demand for the other. Tea and coffee are substitutes.