The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1

-Other things remaining the same, when a fall in the price of one good is followed by an increase in the demand for another good, both goods are said to be:
A)inferior goods.
B)substitute goods.
C)Giffen goods.
D)public goods.
E)complementary goods.

Question

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1
 
-Other things remaining the same, when a fall in the price of one good is followed by an increase in the demand for another good, both goods are said to be:
A)inferior goods. 
B)substitute goods. 
C)Giffen goods. 
D)public goods. 
E)complementary goods.

Quizplus · Accepted Answer

When a fall in the price of one good leads to an increase in the demand for another good, the two goods are complementary goods. This is because the decrease in price makes the combination of both goods more attractive to consumers.

The Table Given Below Reports the Quantity Demanded of a Good