If a 10 percent increase in the price of good A results in an increase of 5 percent in the quantity demanded of good B, then it can be concluded that goods A and B are
A) complementary goods.
B) substitute goods.
C) independent goods.
D) normal goods.

Question

Quizplus · Accepted Answer

Goods A and B are substitute goods because an increase in the price of good A leads to an increase in the quantity demanded of good B, indicating that consumers are switching from A to B.

If a 10 Percent Increase in the Price of Good