If the price of product X falls and thus causes the demand for product Y to shift to the right, then we can conclude that X and Y are substitutes.

Name: If the price of product X falls and thus causes the demand for product Y to shift to the right, then we can conclude that X and Y are substitutes.
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Question

Quizplus · Accepted Answer

If the price of product X falls and the demand for product Y increases, X and Y are likely complements, not substitutes. Substitutes would see a decrease in demand for Y if X's price falls.

If the Price of Product X Falls and Thus Causes