If a rise in the price of good B increases the quantity demanded of good A,
A) A and B are substitutes.
B) A is a substitute for B, but B is a complement to A.
C) B is a substitute for A, but A is a complement to B.
D) A and B are complements.

Question

Quizplus · Accepted Answer

When the price of good B increases and the demand for good A increases, it indicates that consumers are turning to good A as an alternative to good B, meaning A and B are substitutes for each other.

If a Rise in the Price of Good B Increases