If a decrease in the price of good X results in a decrease in the quantity of Y demanded
A) good X and good Y are substitutes.
B) good X and good Y are complements.
C) the cross-price elasticity of demand for good Y is negative.
D) There is not sufficient information to determine the relationship between good X and good Y.

Question

Quizplus · Accepted Answer

If a decrease in the price of good X leads to a decrease in the quantity of Y demanded, it implies that X and Y are substitutes. This phenomenon occurs because consumers tend to switch from Y to X when the price of X decreases, leading to a decrease in the demand for Y.

If a Decrease in the Price of Good X Results