Buyers consider Marlboro cigarettes and Budweiser beer to be complements.If Marlboro just increased its prices,what would you expect to occur in the Budweiser market?

Question

Quizplus · Accepted Answer

Marlboro and Budweiser are considered complements, meaning they are typically consumed together. If the price of Marlboro cigarettes were to increase, consumers may choose to reduce their overall spending on cigarettes and alcohol, which could result in a decrease in demand for Budweiser. The decrease in demand would likely result in Budweiser reducing its price to try and maintain or increase its market share. Therefore, we can expect demand to fall and Budweiser to reduce its price.

Buyers Consider Marlboro Cigarettes and Budweiser Beer to Be Complements