-Refer to Exhibit 3-6.If an increase in the price of good Y causes the demand for good X to shift from D₁ to D₂,goods X and Y are A) normal goods. B) inferior goods. C) substitutes. D) complements. E) neutral goods.

Question

Quizplus · Accepted Answer

If an increase in price of good Y causes the demand for good X to increase and shift to the right, then X and Y are substitutes. This is because as the price of Y increases, consumers will substitute Y with X, causing an increase in the demand for X.