You are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1)the demand (D)for,or supply (S)of,X, (2)the equilibrium price (P)of X and (3)the equilibrium quantity (Q)of X.
-Refer to the above.An increase in the price of a product which is a complement (in consumption)to X will:

Question

Quizplus · Accepted Answer

An increase in the price of a complementary product will decrease the demand for X, as consumers will be less likely to purchase X if its complementary product is more expensive. This will lead to a decrease in the equilibrium price and quantity of X as well. Therefore, the correct choice is C: decrease D, decrease P, and decrease Q.

You Are Asked to Determine,other Things Equal,the Effects of a Given