If a 5 percent increase in the price of good A leads to a 4 percent decrease in the demand for good B, then
A) the goods are substitutes.
B) only one good is a normal good.
C) the goods are complements.
D) both goods are normal goods.

Question

Quizplus · Accepted Answer

The goods are complements because an increase in the price of one good (A) leads to a decrease in the demand for the other good (B).

If a 5 Percent Increase in the Price of Good