If an increase in the price of cookies leads to a decrease in the demand for ice cream,then ice cream and cookies must be
A)Substitutes
B)Complements
C)Normal goods
D)Inferior goods
E)Standardized products

Question

Quizplus · Accepted Answer

Complements are goods that are often used together, so if the price of one increases, the demand for the other decreases because consumers are less likely to buy or use them together. In this case, if the price of cookies increases and the demand for ice cream decreases, it indicates that cookies and ice cream are complements.

If an Increase in the Price of Cookies Leads to a Decrease