Question

If change in price of good A affects the demand for good B, then ______.

Options

• A is a substitute of good B

• A is a complement of good B

• Both (a) and (b)

• Either (a) or (b)

Answer 1

If change in price of good A affects the demand for good B, then A is a substitute of good B or A is a complement of good B.

Explanation:

A and B are related goods if a change in A’s price affects demand for B. They may be substitutes or complements, depending on how their demands relate.