-Refer to the above table. Based on the information in the table, we can say that
A) all three goods are substitutes for each other.
B) all three goods are complements.
C) Goods A and B are substitutes, B and C are complements, and A and C are substitutes.
D) Goods A and B are complements, B and C are substitutes, and A and C are complements.

Question

-Refer to the above table. Based on the information in the table, we can say that
A) all three goods are substitutes for each other. 
B) all three goods are complements. 
C) Goods A and B are substitutes, B and C are complements, and A and C are substitutes. 
D) Goods A and B are complements, B and C are substitutes, and A and C are complements.

Quizplus · Accepted Answer

Substitutes are goods that can replace each other, so if the price of one goes up and the demand for another goes up, they are substitutes. Complements are goods that are often used together, so if the price of one goes up and the demand for the other goes down, they are complements. Based on the pattern described, C is the correct interpretation of the relationships between these goods.

-Refer to the Above Table