As the price of good A rises as a result of a decrease in the supply of good A,the demand for good B rises.Therefore,goods A and B are
A) normal goods.
B) inferior goods.
C) substitutes for one another.
D) complements to one another.
E) none of the above

Question

Quizplus · Accepted Answer

When the price of good A rises due to a decrease in supply, consumers tend to look for alternatives and substitutes. The increase in demand for good B indicates that it is a substitute for good A, meaning that consumers see them as interchangeable products. Therefore, goods A and B are substitutes for one another.

As the Price of Good a Rises as a Result