Suppose that widgets and zaflings are complementary goods. An increase in the price of zaflings causes:

Question

Quizplus · Accepted Answer

When the price of zaflings increases, the demand for its complementary good, widgets, decreases because consumers are less likely to buy zaflings at a higher price, which in turn reduces their need or desire for widgets. This leads to a decrease in the quantity of zaflings demanded and a decrease in the demand for widgets.

Suppose That Widgets and Zaflings Are Complementary Goods