Below are some data on price,income and demand for five different time periods.

-Refer to the information above to answer this question.Between years 4 and 5,both the price and the quantity demanded of X increased.What is the best possible explanation of this?
A)Graphically,the demand curve for X must be upward sloping.
B)Product Y is a complement of product X.
C)Product X is a substitute for product Y.
D)Graphically,the demand curve for product X must have shifted leftwards.
E)None of the choices are correct.

Question

Below are some data on price,income and demand for five different time periods.
 
-Refer to the information above to answer this question.Between years 4 and 5,both the price and the quantity demanded of X increased.What is the best possible explanation of this?
A)Graphically,the demand curve for X must be upward sloping. 
B)Product Y is a complement of product X. 
C)Product X is a substitute for product Y. 
D)Graphically,the demand curve for product X must have shifted leftwards. 
E)None of the choices are correct.

Quizplus · Accepted Answer

Product X being a substitute for product Y could explain why both the price and quantity demanded of X increased. If product Y became more expensive or less available, consumers would switch to product X, increasing its demand and price.

Below Are Some Data on Price,income and Demand for Five