Goods X and Y are complements. If the price of Good X decreases, this will cause a movement ________ the demand curve for Good X and a ________ shift in the demand for Good Y.

Respuesta :

Answer:

along, outward

Explanation:

Complementary goods are goods that complement each other in demand. An increase in quantity demanded of one product leads to increase in sand of the other.

For example tea and sugar. Since tea and sugar are taken together, an increase in demand for tea should result in increased demand for sugar also.

So a decrease in X above will lead to increased demand for X which also increase demand for its complement (Y).

An outward shift in Y means that at all prices Y's demand has increased (demand shift outward).

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