Asked by
Julie Coombs
on Nov 25, 2024
Verified
If two goods are complements,
A) they are consumed independently.
B) an increase in the price of one will increase the demand for the other.
C) a decrease in the price of one will increase the demand for the other.
D) they are necessarily inferior goods.
Complements
Products or services that are often used together, such that the demand for one increases the demand for the other.
Price
The sum of currency anticipated, required, or given in transaction for something.
Demand
The desire and ability of consumers to purchase goods and services at various prices.
- Identify the effects of price changes on the quantity demanded of goods and the relationship between goods (complements, substitutes, normal goods, and inferior goods).
- Understand the relationship between complementary and substitute goods in market dynamics.
Verified Answer
PB
Learning Objectives
- Identify the effects of price changes on the quantity demanded of goods and the relationship between goods (complements, substitutes, normal goods, and inferior goods).
- Understand the relationship between complementary and substitute goods in market dynamics.