Consumers consider that good A and good B are complements in consumption. When the price of good A increases, there is an expectation that there is _____ in quantity of good A demanded and _____ in the demand for good
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease

Question

Quizplus · Accepted Answer

When the price of good A increases, consumers will demand less of good A (a decrease in quantity demanded) and also demand less of good B if they are complements, leading to a decrease in demand for good B.

Consumers Consider That Good a and Good B Are Complements