Question

Which of the following statements represents a correct and sequentially accurate economic explanation? Question 8 options: 1) Goods X and Y are complements. The price of X falls, the quantity demanded of X rises, and the demand for Y falls. 2) Goods X and Y are substitutes. The price of X rises, the demand for X falls, and the demand for Y rises. 3) Goods X and Y are substitutes. The price of X falls, the quantity demanded of X rises, and the demand for Y rises. 4) Goods X and Y are substitutes. The price of X falls, the quantity demanded of X rises, and the demand for Y falls. 5) Goods X and Y are substitutes. The price of X falls, the demand for X rises, and the quantity demanded of Y rises.

Answer 1

Answer:

4

Explanation:

Substitute goods are goods that can be used in place of another good.

if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases

Complementary goods are goods that are consumed together

Goods X and Y are complements, if the price of X falls, the quantity demanded of good X increases and the demand for good Y increases.