Asked by Llaneth Valenzuela on May 31, 2024
Verified
If the demand curve for product B shifts to the right as the price of product A declines,then:
A) both A and B are inferior goods.
B) A is a superior good and B is an inferior good.
C) A is an inferior good and B is a superior good.
D) A and B are complementary goods.
Complementary Goods
Products that are used together, where the consumption of one enhances the value or demand of the other.
Inferior Goods
Products whose demand decreases as the income of the consumer increases, contrasting with normal goods.
- Identify the characteristics and outcomes of goods being substitutes or complements.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
D
Explanation :
When the demand curve for product B shifts to the right as the price of product A declines, it indicates that products A and B are complementary goods. This means that a decrease in the price of product A leads to an increase in demand for product B, as consumers are more likely to purchase both items together.
Learning Objectives
- Identify the characteristics and outcomes of goods being substitutes or complements.