If goods A and B are complements, and if the price of good B rises, how will this affect the market equilibrium for good A?
A) Price will rise and quantity will fall.
B) Price will fall and quantity will rise.
C) Price and quantity will both rise.
D) Price and quantity will both fall.

Question

If goods A and B are complements, and if the price of good B rises, how will this affect the market equilibrium for good A?
A) Price will rise and quantity will fall.
B) ​Price will fall and quantity will rise.
C) Price and quantity will both rise.
D) ​Price and quantity will both fall.

Quizplus · Accepted Answer

When the price of good B rises, the demand for its complement, good A, decreases, leading to a decrease in both the equilibrium price and quantity of good A.

If Goods a and B Are Complements, and If the Price