When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.
A. Substitutes
B. durable and non-durable
C. intermediate and final
D. complements
Correct Answer:
Option D – complements
Explanation
A complementary goods is a goods whose use is related to the use of associated or paired goods. An increase in the price of one will also affect the demand of the other good.
Example; computers need software to function. An increase in the price of a computer system will affect the demand of software
300 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…
200 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…
200 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…
200 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…
200 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…
200 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…