Many economics texts define goods A and B as complements if the demand for A decreases when the price of B increases. This definition assumes A. B A and B are both normal goods. the price increase in B was caused by an increase in the demand for B. the price increase in B was caused by an exogenous change not related to a change in demand for B. All of the above are true. D.

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Deanna HettingerLv2

12 Sep 2018

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Related questions

1. If goods A and B are substituted in consumption, a decrease in the price of good B will _________. If goods A and B are substituted in production, a decrease in the price of good B will _________.

A) increase the demand for good A; increase the supply for good A.

B) decrease the demand for good B; decrease the demand for good A.

C) decrease the demand for good A; increase the supply for good A.

D) increase the demand for good B; decrease the demand for good A.

2. If goods A and Z are complements in consumption, an increase in the price of good Z will _________. If goods A and Z are complements in production, an increase in the price of good Z will _________.

A) increase the demand for good A; decrease the supply for good A.

B) decrease the demand for good A; increase the supply for good A.

C) decrease the demand for good Z; decrease the supply for good A.

D) increase the demand for good A; increase the demand for good A.

3. what are the differences between (substitutes / complements) in (consumption / production)?