Goods X and Y are complementary goods. An increase in the price of good X has occurred. In the market for good Y this will lead to
A)an increase in price and a decrease in quantity.
B)an increase in price and an increase in quantity.
C)a decrease in price and a decrease in quantity.
D)a decrease in price and an increase in quantity.

Question

Quizplus · Accepted Answer

When the price of good X increases, the demand for its complementary good Y decreases, leading to a decrease in both the price and quantity of good Y.

Goods X and Y Are Complementary Goods