If a decrease in the price of good X results in a decrease in the quantity of Y demanded:

A. good X and good Y are substitutes.
B. good X and good Y are complements.
C. the cross-price elasticity of demand for good Y is negative.
D. There is not sufficient information to determine the relationship between good X and good Y.


Answer: A

Economics

You might also like to view...

Total utility always decreases when additional amounts of a commodity are consumed.

Answer the following statement true (T) or false (F)

Economics

Explain two different ways to determine the profit-maximizing level of output for a firm in a perfectly competitive market

What will be an ideal response?

Economics

What does the demand curve for money look like? Why?

What will be an ideal response?

Economics

The net result of deflation is to:

A. decrease consumption and investment, decreasing aggregate demand. B. decrease consumption and increase investment, decreasing aggregate demand overall. C. increase consumption and investment, increasing aggregate demand. D. increase consumption and decrease investment, increasing aggregate demand overall.

Economics