If two goods, J and K, are complements, then which of the following statements is FALSE?
A) They are consumed together.
B) An increase in the price of J causes the demand for K to rise.
C) When the quantity demanded of J increases, the demand for K increases.
D) A decrease in the price of K causes an increase in the demand for J.

Question

Quizplus · Accepted Answer

When two goods are complements, an increase in the price of one (J) typically leads to a decrease in the demand for the other (K), not an increase. This is because they are used together, so if one becomes more expensive, people are less likely to buy both.

If Two Goods, J and K, Are Complements, Then Which