If pencils and paper are complements for most consumers, then if the price of paper increases, you would expect:
A)the equilibrium price and quantity of pencils to fall.
B)the equilibrium price and quantity of pencils to rise.
C)the equilibrium price of pencils to fall and the equilibrium quantity of pencils to rise.
D)the equilibrium price of pencils to rise and the equilibrium quantity of pencils to fall.

Question

Quizplus · Accepted Answer

If pencils and paper are complements, and the price of paper increases, then the demand for pencils will fall. As a result, the equilibrium price and quantity of pencils will fall.

If Pencils and Paper Are Complements for Most Consumers, Then