As the price of good X rises as a result of a decrease in supply, the demand for good Y falls. Therefore, goods X and Y are
A)substitutes for one another.
B)normal goods.
C)complements to one another.
D)inferior goods.

Question

Quizplus · Accepted Answer

When the price of good X, a complement to good Y, rises due to a decrease in supply, the demand for good Y falls. Complement goods are goods that are used together, so when the price of one increases, the demand for the other decreases. Therefore, goods X and Y are complements to one another.

As the Price of Good X Rises as a Result