If the price of product X falls and this change increases the demand for product Y, then
A) X and Y are complements.
B) X and Y are substitutes.
C) X is an inferior good.
D) Y is an inferior good.
Question 2
Refer to the table above. Assume that the market for notebooks is in equilibrium. Which of the following is likely to happen if there is an increase in the school enrollment rate, other things remaining the same?
A) The equilibrium price and quantity remain unchanged.
B) Both the equilibrium price and quantity of notebooks decrease.
C) Both the equilibrium price and quantity of notebooks increase.
D) The equilibrium price increases, but the equilibrium quantity of notebooks decreases.
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