Exhibit 19-4 Refer to Exhibit 19-4. As a consequence of the depicted change in the supply of X, the demand curve for Y shifted from D₁ to D₂. It follows that A)X and Y are substitutes. B)X and Y are complements. C)X and Y are inferior goods. D)demand for Y is price elastic.

Question

Quizplus · Accepted Answer

The shift in the supply curve for X caused an increase in the price of X, resulting in an increase in demand for a substitute good, Y. This means that X and Y are substitutes, and the shift in the demand curve for Y indicates a positive relationship between the price of X and the quantity demanded of Y. The given information does not provide any indication of whether X and Y are complements or inferior goods, so options B and C can be eliminated. The elasticity of demand for Y cannot be determined from the given information, so option D can also be eliminated.

Exhibit 19-4 ​ Refer to Exhibit 19-4. as a Consequence of the Depicted

Exhibit 19-4 Refer to Exhibit 19-4. as a Consequence of the Depicted