| If due to fall in the price of good X, demand for good Y rises, the two goods are: (choose the correct alternative) |
| (a) Substitutes |
| (b) Complements |
| (c) Not related |
| (d) Competitive |
Answer:
If due to fall in the price of good X, demand for good Y rises, the two goods are complements. This is because demand for a good moves in the opposite direction of the price of its complementary goods. Hence, the correct answer is option (b).
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