Suppose you like to make, from scratch, pies filled with bananas and vanilla pudding. You notice that the price of bananas has increased. As a result, your demand for vanilla pudding would
A)decrease.
B)increase.
C)be unaffected.
D)change but you don't know how without more information.

Question

Quizplus · Accepted Answer

The demand for vanilla pudding would decrease because it is a complementary good to bananas. When the price of bananas increases, you would likely buy fewer bananas, and since vanilla pudding is used together with bananas in your pies, you would also decrease your demand for vanilla pudding.

Suppose You Like to Make, from Scratch, Pies Filled with Bananas