Suppose that the market demand curve for cauliflower is a function of the price of cauliflower, the price of broccoli, and income. If the partial derivative of quantity demanded of cauliflower with respect to the price of broccoli is positive, cauliflower and broccoli are:
A) substitutes.
B) complements.
C) normal goods.
D) inferior goods.

Question

Quizplus · Accepted Answer

If the partial derivative of quantity demanded of cauliflower with respect to the price of broccoli is positive, it means that as the price of broccoli increases, the demand for cauliflower also increases. This behavior indicates that cauliflower and broccoli are substitutes, as consumers switch to cauliflower when broccoli becomes more expensive.

Suppose That the Market Demand Curve for Cauliflower Is a Function