Question : If the cost of good "X" decreases, increasing the demand for product "Y," then both goods are:
Option 1: Subsittude Goods
Option 2: Complementary goods
Option 3: Inter-related goods
Option 4: None of these

Question

Question : If the cost of good "X" decreases, increasing the demand for product "Y," then both goods are:

Option 1: Subsittude Goods

Option 2: Complementary goods

Option 3: Inter-related goods

Option 4: None of these

Team Careers360 · Accepted Answer

Correct Answer: Complementary goods

Solution : If the cost of good "X" decreases, increasing the demand for product "Y," then both goods are complementary goods.
When two goods are complements, they experience joint demand - the demand of one good is linked to the demand for another good. Therefore, if a higher quantity is demanded of one good, a higher quantity will also be demanded of the other, and vice versa.
Hence the correct answer will be option B..

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Question : If the cost of good "X" decreases, increasing the demand for product "Y," then both goods are:Option 1: Subsittude GoodsOption 2: Complementary goodsOption 3: Inter-related goodsOption 4: None of these

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Question : If the cost of good "X" decreases, increasing the demand for product "Y," then both goods are:
Option 1: Subsittude Goods
Option 2: Complementary goods
Option 3: Inter-related goods
Option 4: None of these

Question : Which of the following statements is correct?
I. If $x=12, y=-2$ and $z=-10$, then $x^3+y^3+z^3=360$.
II. If $x+y=48$ and $4 x y=128$, then $4 x^2+4 y^2=4480$.

Question : Statement 1: When the price of a complementary good increases, the demand for the main good decreases.

Statement 2: Complementary goods are consumed together, and an increase in the price of one reduces the affordability and demand for the other.