Asked by
rajnandini agarwal
on Dec 17, 2024
Verified
Suppose that a decrease in the price of good X results in fewer units of good Y being demanded. This implies that X and Y are
A) complementary goods.
B) normal goods.
C) inferior goods.
D) substitute goods.
Complementary Goods
Products or services that are typically used together, where the increase in consumption of one leads to an increase in consumption of the other.
Good X
A term used to denote a specific product or commodity in economic models.
- Familiarize oneself with the terminology and qualities of inferior goods, normal goods, substitute goods, and complementary goods.
- Perceive the implications of price changes in goods that are either substitutes or complements on the consumption demand for a product.
Verified Answer
GB
Learning Objectives
- Familiarize oneself with the terminology and qualities of inferior goods, normal goods, substitute goods, and complementary goods.
- Perceive the implications of price changes in goods that are either substitutes or complements on the consumption demand for a product.