What is the relationship between goods A and B if an increase in the price of A leads to an increase in the quantity demanded of B?
A)A and B are complementary goods.
B)A and B are substitute goods.
C)A must be an inferior good while B must be a normal good.
D)B must be an inferior good while A must be a normal good.

Question

Quizplus · Accepted Answer

A and B are substitute goods because when the price of good A increases, consumers turn to good B as an alternative, increasing its demand. This behavior is characteristic of substitute goods, where one can be used in place of another.

What Is the Relationship Between Goods a and B If