-The increase in the demand for widgets, shown in the figure above, is the result of an increase in the price of McBoover devices. Therefore,
A) widgets are a normal good.
B) McBoover devices are a normal good.
C) widgets and McBoover devices are substitutes.
D) widgets and McBoover devices are complements.

Question

-The increase in the demand for widgets, shown in the figure above, is the result of an increase in the price of McBoover devices. Therefore,
A) widgets are a normal good. 
B) McBoover devices are a normal good. 
C) widgets and McBoover devices are substitutes. 
D) widgets and McBoover devices are complements.

Quizplus · Accepted Answer

When the demand for widgets increases due to an increase in the price of McBoover devices, it indicates that consumers are turning to widgets as an alternative to the now more expensive McBoover devices. This behavior suggests that widgets and McBoover devices are substitutes for each other, as consumers switch to widgets when McBoover devices become more expensive.

-The Increase in the Demand for Widgets, Shown in the Figure