Asked by
Keannah Ocasio
on Dec 11, 2024
Verified
If a decrease in the price of good Y causes the demand for good Z to decrease, this indicates that
A) Y and Z are complements.
B) Y and Z are substitutes.
C) Y and Z are unrelated.
D) the demand for Y is elastic, but the demand for Z is inelastic.
Complements
Products or services that are used together, where the consumption or use of one increases the demand for the other.
Substitutes
Goods or services that can be used in place of each other, satisfying the same needs or desires.
- Scrutinize how the availability of substitute and complementary goods modifies demand.
Verified Answer
FM
Learning Objectives
- Scrutinize how the availability of substitute and complementary goods modifies demand.