An increase in the price of good B resulting from a decrease in the supply of B caused an increase in the demand for good C. This indicates that goods B and C are

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Alayna

Business

9 December, 07:41

An increase in the price of good B resulting from a decrease in the supply of B caused an increase in the demand for good C. This indicates that goods B and C are

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Dusty · Answer 1

The correct answer is: substitutes.

Explanation:

A decrease in the supply of good B will cause the supply curve to move to the left. This leftward shift in the supply curve will cause the price of good B to increase.

The consumers will prefer a cheaper substitute, so when the price of good B increases, the demand for good C will increase.

This indicates that good B and good C are substitute goods.