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Question

If the price of good A decreases, the quantity demanded of good B increases. Then good A and B are _____ .

A
Substitute good
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B
Complementary good
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C
Normal good
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D
Inferior good
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Solution

The correct option is B Complementary good
Complementary goods are goods that are generally bought together by the consumer. For example, the demand for printers generates the demand for cartridges. If the price of printers reduce, consumers will buy more printers and hence demand of cartridges increases.

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