If an increase in the supply of good A increases the demand for good B,then
A)the cross elasticity of supply for good B with respect to the price of good A is positive.
B)the elasticity of supply for good A is greater than 1.
C)A and B are complements.
D)A and B are substitutes.
E)the demand for A is price elastic.

Question

Quizplus · Accepted Answer

When an increase in the supply of good A increases the demand for good B, it indicates that goods A and B are complements. This is because the increased availability or lower price of good A makes people more likely to purchase good B, which is used together with good A.

If an Increase in the Supply of Good a Increases