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Question

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
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B
Complements
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C
Not related
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D
Competitive
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Solution

The correct option is A Complements
If due to a fall in the price of good X, the demand of good Y rises, the two goods are complements because these goods complete the demand of each other.
Hence, B is the correct option.


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