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If the price of product A decreases and in the result the demand for product B increases then we can say that:

A. A and B are substitute goods

B. A and B are complementary goods

C. A is an inferior good

D. B is an inferior good

Correct Answer : B.


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  1. With an increase in income, consumer is expected to buy more of:
  2. The fundamental choices that a society must make about the use of its resources include:
  3. Scarcity is:
  4. In short run, a firm can change its:
  5. Which of the following is not a property of indifference curve?
  6. The MC curve cuts the AVC and ATC curves:
  7. Demand of a commodity is elastic when:
  8. The central problem of economics is:
  9. Price effect occurs on the higher IC in case of:
  10. Most of the supply curves with which the average consumer deals are:
  11. A normal profit is:
  12. If the price of a product falls then quantity demanded tends to increase ceteris paribus because:
  13. A vertical supply curve parallel to the price axis implies that the elasticity of supply is:
  14. In monopolistic competition, the firm take advantage due to customers:
  15. Elasticity (E) expressed by the term, 8 >E>1, is:
  16. Labor Saving Technological Progress can be defined as:
  17. The addition or increment to the total cost involvesd in expanding or contracting output by one unit…
  18. If the price of product A decreases and in the result the demand for product B increases then we can…
  19. Which is the correct statement?
  20. General equilibrium is concerned with simultaneous equilibrium of:
  21. In 1932, The nature and significance of economic science was written by:
  22. If the commodity is normal then price effect is:
  23. Rational economic behavior on the part of the consumer means that he will:
  24. The falling part of total Utility (TU) curve shows:
  25. In the long run:
  26. Some economists refer to iso-product curves as:
  27. Demand is elastic when the coefficient of elasticity is:
  28. If the marginal utility of apples to a consumer exceeds that of bananas then the consumer:
  29. The consumer is in equilibrium at the where:
  30. In finding equilibrium position of a profitmaximizing firm, which technique is most convenient?