If an increase in the price of Good X causes the demand for Good Y to shift rightward, Goods X and Y are complements.

Question

Quizplus · Accepted Answer

If the demand for Good Y shifts rightward in response to an increase in the price of Good X, then Goods X and Y are likely substitutes, not complements. This is because consumers are switching from buying Good X to buying Good Y, indicating that they see the two goods as interchangeable in some way.

If an Increase in the Price of Good X Causes