If a rise in the price of product A causes the demand for product B to decrease, then
A) A and B are substitutes.
B) A and B complements.
C) B is an inferior good.
D) B is a normal good.
E) A and B are both inferior goods.

Question

Quizplus · Accepted Answer

A rise in the price of product A causing the demand for product B to decrease indicates that A and B are complements, meaning they are often used together. When the price of one goes up, the demand for the other goes down because consumers are less likely to buy them together.

If a Rise in the Price of Product a Causes