If your purchases of good A increase from 9 units per year to 11 units per year when the price of good B increases from $8 to $12,all other things equal,for you,good A and good B are considered _____ goods.

A) inferior
B) luxury
C) substitute
D) complementary

Question

Jessica Paris · Accepted Answer

Final Answer : C, Explanation :  The increase in the purchases of good A when the price of good B increases suggests that the two goods are substitutes. As the price of good B increases, consumers may switch to buying more of good A instead.

If your purchases of good A increase from 9 units per year to 11 units per year when the price of good B increases from $8 to $12,all other things equal,for you,good A and good B are considered _____ goods.

A) inferior
B) luxury
C) substitute
D) complementary

Definitions

Learning Objectives

Learning Objectives

Related questions

If your purchases of good A increase from 9 units per year to 11 units per year when the price of good B increases from $8 to $12,all other things equal,for you,good A and good B are considered _____ goods.A) inferiorB) luxuryC) substituteD) complementary

Definitions

Learning Objectives

Learning Objectives

Related questions

If your purchases of good A increase from 9 units per year to 11 units per year when the price of good B increases from $8 to $12,all other things equal,for you,good A and good B are considered _____ goods.

A) inferior
B) luxury
C) substitute
D) complementary