If a rise in the price of product A causes the demand curve for product B to shift leftward, then
A) A and B are substitutes.
B) A and B complements.
C) B is an inferior good.
D) B is a normal good.
E) A and B are both inferior goods.

Question

Quizplus · Accepted Answer

When the price of product A increases and causes the demand for product B to decrease (shift leftward), it indicates that A and B are complements. This means that they are often used together, so an increase in the price of one leads to a decrease in the demand for the other.

If a Rise in the Price of Product a Causes