6
QuizMultiple Choice

Unit Test — Unit test

Question 6 • IL-Economics

Products whose demand rises when another product’s price increases are called

Answer
s
substitute goods.
c
complementary goods.
e
elastic goods.
c
clearance goods.

Explanation

When two products can be used in place of each other, a rise in the price of one can lead consumers to buy more of the other. These are called substitute goods, so choice A is correct. Complementary goods are typically used together, so a price increase for one tends to reduce demand for the other.

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