If goods X and Y are complements, then a reduction in the price of good X decreases the demand for good Y.

Name: If goods X and Y are complements, then a reduction in the price of good X decreases the demand for good Y.
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Question

Quizplus · Accepted Answer

When two goods are complements, a decrease in the price of one good increases the demand for the other good, and vice versa. Therefore, a reduction in the price of good X would actually increase the demand for good Y, not decrease it.

If Goods X and Y Are Complements, Then a Reduction