The price of good A rises,and the demand curve for good B shifts leftward.We can conclude that
A)A and B are substitutes.
B)A and B are complements.
C)A and B are complements in production.
D)B is an inferior good.
E)B is a normal good.

Question

Quizplus · Accepted Answer

When the price of good A rises and the demand for good B decreases (shifts leftward), it indicates that goods A and B are complements. This means that they are often used together, so an increase in the price of one leads to a decrease in the demand for the other.

The Price of Good a Rises,and the Demand Curve for Good