The price of coffee increases by 10%,and as a result,Alex purchases fewer doughnuts.For Alex,coffee and doughnuts are:
A)complements.
B)substitutes.
C)inferior goods.
D)normal goods.

Question

Quizplus · Accepted Answer

Complements are goods that are typically consumed together. In this scenario, coffee and doughnuts are consumed together. When the price of coffee increases, Alex may choose to purchase fewer doughnuts as a result. This suggests that they are complements, rather than substitutes, inferior goods, or normal goods.

The Price of Coffee Increases by 10%,and as a Result,Alex