What is the effect on product A of an increase in the price of complementary product B?
A)It will cause an increase in the quantity demanded.
B)It will cause an increase in demand.
C)It will cause a decrease in demand.
D)It will cause an increase in supply.
E)It will cause a decrease in supply.

Question

Quizplus · Accepted Answer

Complementary products are those that are typically used together. Therefore, an increase in the price of product B will lead to a decrease in demand for both products, as consumers will be less willing to pay the higher price for both products. This means that the demand curve for product A will shift leftward (decrease) as a result of the increase in the price of complementary product B.

What Is the Effect on Product a of an Increase