Two Goods, X and Y, Are Complementary Goods If the Demand

question 15

Multiple Choice

Two goods, X and Y, are complementary goods if the demand for X:

• A) increases when the price of Y increases.
• B) increases when income increases.
• C) decreases when the price of Y increases.
• D) increases as the price of its substitute good increases.
• E) decreases as the price of its substitute good decreases.

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Definitions:

Merchant

An individual or business involved in the wholesale or retail sale of goods.

Firm Offer

A proposal in business transactions that remains valid for a specified period and cannot be revoked during that time.

Merchant

An individual or business engaged in the wholesale or retail trading of goods and services, traditionally involved in buying and selling with the aim of earning a profit.

Goods of the Kinds

Products or items that are characteristic of what is described in a contract, conforming to expectations based on trade and usage.