The figure given below shows the relation between the quantity demanded for the good X and the price of the good Z. What type of goods are X and Z? - Economics

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MCQ

The figure given below shows the relation between the quantity demanded for the good X and the price of the good Z. What type of goods are X and Z?

Options

  • Unrelated goods

  • Substitute goods

  • Complementary goods

  • Giffen goods

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Solution

Complementary goods

Explanation:

The price of an item Z and the demand for its complement good X have an inverse relationship. When the price of good Z rises, it reduces not only the demand for good Z, but also the desire for good X. The graph depicts the indirect relationship between the price of Good Z and the demand for Good X. As a result, they are complimentary items.

Concept: Demand
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2022-2023 (March) Official

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