Asked by Nurul Izzati on May 19, 2024
Verified
If goods A and Z are complements,an increase in the price of good Z will:
A) increase the demand for good A.
B) decrease the demand for good A.
C) decrease the demand for good Z.
D) decrease the demand for both good A and good Z.
Complements
Goods or services that are used together, where an increase in the demand for one leads to an increase in demand for the other.
- Gain insight into the principle of complements and substitutes and their effect on market demand.
Verified Answer
IB
Iliana BorreroMay 24, 2024
Final Answer :
B
Explanation :
If the price of good Z increases, people will be less likely to buy it. As a result, they will also buy less of its complement, good A. Therefore, the demand for good A will decrease.
Learning Objectives
- Gain insight into the principle of complements and substitutes and their effect on market demand.