If the price of one good increases, and as a result the demand for another related good falls, the goods are
A) substitutes.
B) normal goods.
C) complements.
D) inferior goods.

Question

Quizplus · Accepted Answer

This scenario describes complement goods, where the demand for one good is dependent on the price of another good. An increase in the price of one good (the complementary good) is causing a decrease in demand for the other related good. Example: if the price of gasoline increases, the demand for automobiles (a complement) will decrease.

If the Price of One Good Increases, and as a Result