Suppose we observe that the demand for eggs increases when people buy more potatoes. We can conclude that eggs and potatoes are
A) inferior goods.
B) normal goods.
C) complements.
D) substitutes.

Question

Quizplus · Accepted Answer

When the demand for one good increases when the price of another good increases, the two goods are considered complements. In this case, eggs are complementary to potatoes, meaning that they are typically consumed together.

Suppose We Observe That the Demand for Eggs Increases When