Figure 4.1.5
-Refer to Figure 4.1.5 above. In the downward-sloping portion of the curve that connects points A, B and D, the two goods, food and clothing, are:

Question

Quizplus · Accepted Answer

The downward-sloping portion of the curve indicates that as the price of one good (e.g. food) decreases, the quantity demanded of that good increases while the quantity demanded of the other good (e.g. clothing) decreases. This suggests that the two goods are substitutes, as consumers are likely to switch to buying more of one good (food) when the price of the other good (clothing) increases.

Figure 4.1.5 -Refer to Figure 4.1.5 Above. in the Downward-Sloping Portion of Portion