Question 12
Theory of DemandIf the curve above shows the relationship between the price of commodity X and the quantity demanded of commodity Y, then X and Y are
- A.complementary goods
- B.substitutes
- C.inferior goods
- D.luxury goods.
Show the answer and explanation
Answer: B (substitutes)
Explanation
As the price of X rises, more Y is demanded. People are switching from X to Y, so they are substitutes.