Suppose coffee and cream are complementary goods. If the supply of cream falls we would expect the price of coffee to go ________ and the equilibrium quantity of coffee to go ________.
A)down, down
B)down, up
C)up, down
D)up, up

Question

Quizplus · Accepted Answer

Coffee and cream are complementary goods, so a decrease in the supply of cream will lead to a decrease in the demand for coffee. This will cause the price of coffee to fall and the equilibrium quantity of coffee to fall as well.

Suppose Coffee and Cream Are Complementary Goods