If an increase in the price of Product X causes an increase in the demand for Product Y, we can conclude that:
A)Products X and Y are complements.
B)Products X and Y are substitutes.
C)Products X and Y are normal goods.
D)The price of Product Y will decrease.

Question

If an increase in the price of Product X causes an increase in the demand for Product Y, we can conclude that:
A)​Products X and Y are complements.
B)​Products X and Y are substitutes.
C)​Products X and Y are normal goods.
D)​The price of Product Y will decrease.

Quizplus · Accepted Answer

Products X and Y are substitutes because an increase in the price of Product X leads consumers to demand more of Product Y, indicating that consumers are turning to Product Y as an alternative to Product X.

If an Increase in the Price of Product X Causes