Assume that the price of X decreases and as a result of that the demand for Y increases while the demand for Z decreases. From this we can conclude that
A) goods X and Y are substitutes in consumption.
B) goods X and Z are substitutes in consumption.
C) goods Y and Z are complements in consumption.
D) None of the above is correct.

Question

Quizplus · Accepted Answer

When the price of X decreases and the demand for Y increases, it suggests that X and Y are complements. However, since the demand for Z decreases, it indicates that X and Z are substitutes.

Assume That the Price of X Decreases and as a Result