-In the above figure, the demand curve for Good A shifts from D₁ to D₂ in Graph A when the price of Good B changes from P₁ to P₂ in Graph B. We can conclude that
A)Good A and Good B are substitutes.
B)Good A and Good B are complements.
C)Good A is a normal good but Good B is an inferior good.
D)Good A and Good B are unrelated.

Question

-In the above figure, the demand curve for Good A shifts from D₁ to D₂ in Graph A when the price of Good B changes from P₁ to P₂ in Graph B. We can conclude that
A)Good A and Good B are substitutes. 
B)Good A and Good B are complements. 
C)Good A is a normal good but Good B is an inferior good. 
D)Good A and Good B are unrelated.

Quizplus · Accepted Answer

When the price of Good B changes and causes the demand curve for Good A to shift, it indicates that the two goods are substitutes. A price increase in Good B leads to an increase in demand for Good A, shifting the demand curve from D₁ to D₂.

-In the Above Figure, the Demand Curve for Good a Shifts