An increase in the price of good X causes the demand for good Y to shift inward. One can conclude that X and Y are:
A) complements.
B) substitutes.
C) unrelated goods.
D) normal goods.
E) exceptions to the law of demand.

Question

Quizplus · Accepted Answer

When the price of a complement (good X) increases, it becomes relatively more expensive to consume both goods, leading to a decrease in demand for the other complement (good Y).

An Increase in the Price of Good X Causes the Demand