3. If a fall in price of one goods leads to a rise in the demand of another good the goods are
a)Substitute
b)Complementary
c)Normal
d)Inferior
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Answer:
(b) Complementary
Explanation:
Two goods are substitutes if an increase in the price of one causes an increase in the demand for the other. Two goods are complements if an increase in the price of one causes a decrease in the demand for the other.
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