-In the above figure, the demand curve for Good A shifts from D1 to D2 in Graph A when the price of Good B changes from P1 to P2 in Graph B. We can conclude that
A) Good A and Good B are substitutes.
B) Good A and Good B are complements.
C) Good A is a normal good but Good B is an inferior good.
D) Good A and Good B are unrelated.

Question

-In the above figure, the demand curve for Good A shifts from D1 to D2 in Graph A when the price of Good B changes from P1 to P2 in Graph B. We can conclude that
A) Good A and Good B are substitutes. 
B) Good A and Good B are complements. 
C) Good A is a normal good but Good B is an inferior good. 
D) Good A and Good B are unrelated.

Quizplus · Accepted Answer

When the price of Good B increases (from P1 to P2 in Graph B) and as a result, the demand for Good A increases (shifts from D1 to D2 in Graph A), it indicates that consumers are turning to Good A as an alternative. This behavior is characteristic of substitute goods, where an increase in the price of one good leads to an increase in the demand for another good.

-In the Above Figure, the Demand Curve for Good a Shifts