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    Question

    For goods x1 and x2 with prices P1 and P2, if

    dx1/dP2 is positive then,
    A X1 and X2 are substitutes Correct Answer Incorrect Answer
    B X1 and X2 are complements Correct Answer Incorrect Answer
    C X1 and X2 are bads Correct Answer Incorrect Answer
    D X1 and X2 are neutral Correct Answer Incorrect Answer
    E X1 and X2 are not related Correct Answer Incorrect Answer

    Solution

    For substitutes, if price of one good increase the demand for the other good increases and vice-versa.

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