Read the two statements and choose the correct option.
I. For substitutes, the price of one and the demand for the other move in the same direction.
II. For complements, the price of one and the demand for the other move in the same direction.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

I is true: dearer tea, more coffee demanded.
II is false: dearer petrol, fewer cars demanded; they move in opposite directions.

Ten questions from Demand & Its Determinants, at your own pace.

Ten questions from Demand & Its Determinants, at your own pace.

Read the two statements and choose the correct option.I. For substitutes, the price of one and the demand for the other move in the same direction.II. For complements, the price of one and the demand for the other move in the same direction.