If two goods are ________,then an increase in the price of one leads to ________ in the quantity demanded of the other.
A) complements; a decrease
B) complements; no change
C) substitutes; a decrease
D) substitutes; no change
E) normal; an increase

Question

Quizplus · Accepted Answer

Complementary goods are goods that are used together, like peanut butter and jelly. Therefore, an increase in the price of one will lead to a decrease in the quantity demanded of the other, as people will likely purchase less of both goods because they are used in conjunction.

If Two Goods Are ________,Then an Increase in the Price