Suppose that when the price of ice cream increases, Liza buys less hot fudge.To Liza,
A)ice cream and hot fudge are complements.
B)ice cream and hot fudge and substitutes.
C)ice cream and hot fudge are normal goods.
D)ice cream is a normal good and hot fudge is an inferior good.

Question

Quizplus · Accepted Answer

When two goods are complements, an increase in the price of one good leads to a decrease in the quantity demanded of the other good. In this case, an increase in the price of ice cream led to a decrease in the quantity demanded of hot fudge, indicating that the two goods are complements.

Suppose That When the Price of Ice Cream Increases, Liza