Answer to Question #205077 in Microeconomics for Fatuma

Question

Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y 

are 

A. complementary goods

B. substitute goods

C. unrelated goods 

D. normal goods

Answer 1

X and Y are substitute goods because a decrease in price of X means that consumers will demand more of X .Demand for good Y will decrease because consumers will go for good X instead of Y.