If a 10 percent increase in the price of Good A results in an increase of 5 percent in the quantity demanded of Good B, then it can be concluded that Goods A and B are

A) complementary goods.
B) substitutes goods.
C) independent goods.
D) normal goods.

Question

Queen Charles · Accepted Answer

Final Answer : B, Explanation :  When the price of Good A increases and the demand for Good B increases, it indicates that consumers are turning to Good B as an alternative, suggesting that Goods A and B are substitutes.

If a 10 percent increase in the price of Good A results in an increase of 5 percent in the quantity demanded of Good B, then it can be concluded that Goods A and B are

A) complementary goods.
B) substitutes goods.
C) independent goods.
D) normal goods.

Definitions

Learning Objectives

Learning Objectives

Related questions

If a 10 percent increase in the price of Good A results in an increase of 5 percent in the quantity demanded of Good B, then it can be concluded that Goods A and B areA) complementary goods.B) substitutes goods.C) independent goods.D) normal goods.

Definitions

Learning Objectives

Learning Objectives

Related questions

If a 10 percent increase in the price of Good A results in an increase of 5 percent in the quantity demanded of Good B, then it can be concluded that Goods A and B are

A) complementary goods.
B) substitutes goods.
C) independent goods.
D) normal goods.