If an increase in the price of good X leads to a decrease in the consumption of good Y,then goods X and Y are called
A) substitutes.
B) complements.
C) normal goods.
D) inferior goods.

Question

Quizplus · Accepted Answer

When the price of one good increases and it causes a decrease in the consumption of another good, they are called complements. This is because the goods are typically consumed together or are interdependent. For example, if the price of coffee increases, people may consume less coffee and therefore consume fewer pastries, which are complements to coffee.

If an Increase in the Price of Good X Leads