Question

suppose that the price of product a increased from $9 to $11 and the quantity demanded of product b increased from 192 to 208. what can be said about the products? question 70 options: a) they both have elastic demands. b) they both have inelastic demands. c) they are inferior products. d) they are complementary products. e) they are substitute products.

Answer 1

To determine the elasticity of demand for a product, we analyze the relationship between price and quantity demanded. From the given information, we can see that as the price of product A increased, the quantity demanded of product B also increased. This suggests that the two products are likely substitutes.

Option e) They are substitute products.