Question

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

complementary goods.

substitute goods.

elastic goods.

clearance goods.

provides consumers with additional income
(select all that apply)

Answer 1

The graph shows a demand curve.

A graph titled Demand Curve has Quantity Demanded on the x-axis, from 0 to 60 in increments of 10, and Price on the y-axis, from 0 to 20 dollars in increments of 2 dollars and 50 cents. A line with negative slope is on the graph.

What does the data shown in this graph represent?

A. a decrease in quantity demanded as prices decrease

B. an increase in price as quantity demanded decreases

C. a decrease in income as quantity demanded increases

D. an increase in quantity demanded as prices decrease

Step-by-step explanation: OPTION D IS CORRECT

Answer 2

The correct option is SUBSTITUTE GOOD.
Substitute goods are goods which can be substituted for each other. If the price of one substitute good increase, the demand for the other substitute good will increase. For instance, for two goods A and B which are substitute, if the price of A increases, consumers will abandon A and start to buy more of B, whose price is lower, thus, the demand for good B will increase.