Exhibit 3-6

-Refer to Exhibit 3-6.If an increase in the price of good Y causes the demand for good X to shift from D? to D?,goods X and Y are
A) normal goods.
B) inferior goods.
C) substitutes.
D) complements.
E) neutral goods.

Question

Exhibit 3-6
 
-Refer to Exhibit 3-6.If an increase in the price of good Y causes the demand for good X to shift from D? to D?,goods X and Y are
A) normal goods. 
B) inferior goods. 
C) substitutes. 
D) complements. 
E) neutral goods.

Quizplus · Accepted Answer

If an increase in the price of good Y causes the demand for good X to shift from D? to D?, they are substitutes. This is because consumers switch to the substitute good (good X) as the price of the original good (good Y) increases.

Exhibit 3-6 -Refer to Exhibit 3-6.If an Increase in the Price of in the Price