If an increase in the price of good X leads to a decrease in the demand for good Y, then:
A)good X and good Y are complements.
B)good X and good Y are normal goods.
C)good X and good Y are substitutes.
D)good X is a normal good and good Y is an inferior good.

Question

Quizplus · Accepted Answer

Two goods are complements if an increase in the price of one good leads to a decrease in the demand for the other (or a decrease in the price of one good leads to an increase in the demand for the other).

If an Increase in the Price of Good X Leads