Asked by Mercy’s World on Jun 25, 2024
Verified
If the price of chocolate-covered peanuts increases and the demand for strawberry-flavored soft drinks decreases,this indicates that these two goods are _____ goods.
A) unrelated
B) complementary
C) inferior
D) substitute
Complementary Goods
Complementary Goods are products or services that are typically consumed together, where the demand for one increases the demand for the other.
Chocolate-Covered Peanuts
A snack made by coating peanuts in chocolate, combining the flavors and textures of both ingredients.
Strawberry-Flavored
It indicates a product or item that is designed to taste like strawberries, often achieved through natural or artificial flavoring agents.
- Understand the concept of cross-price elasticity of demand.
- Learn the impact of price changes on the demand for related goods (complements and substitutes).
Verified Answer
Learning Objectives
- Understand the concept of cross-price elasticity of demand.
- Learn the impact of price changes on the demand for related goods (complements and substitutes).
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