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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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