Asked by
Abhinav Gupta
on Nov 03, 2024
Verified
Two goods are ________ good if an increase in the price of one causes a fall in demand for the other.
A) substitute
B) complementary
C) supply-driven
D) opposite
Substitute Good
A product or service that consumers can use in place of another product or service, fulfilling a similar need or want.
Complementary
Referring to goods or services that enhance or add value to each other when used or consumed together.
- Recognize the concept of substitute and complementary goods and how changes in prices affect demand for these goods.
Verified Answer
PV
Learning Objectives
- Recognize the concept of substitute and complementary goods and how changes in prices affect demand for these goods.