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Question
If with the rise in price of good Y, demand for good X rises, the two goods are ______.
Options
Substitutes
Complements
Not related
Jointly demanded
MCQ
Fill in the Blanks
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Solution
If with the rise in price of good Y, demand for good X rises, the two goods are Substitutes.
Explanation:
A rise in the price of Y shifts demand toward its substitute X. For complementary goods, a rise in Y’s price would reduce demand for X.
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