Goods X and Y Are Complementary Goods

question 28

Multiple Choice

Goods X and Y are complementary goods. An increase in the price of good X has occurred. In the market for good Y this will lead to

• A)an increase in price and a decrease in quantity.
• B)an increase in price and an increase in quantity.
• C)a decrease in price and a decrease in quantity.
• D)a decrease in price and an increase in quantity.

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Definitions:

Tradeoffs

The exchange of one benefit for another, often as a result of compromise or balancing factors.

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans tend to have naturally.

General Theme

The central idea or underlying message conveyed by a piece of writing, speech, or work of art.

Distant Future

A time period far ahead from the present, often considered in planning, forecasting, or speculative discussions.