Suppose that when the price of strawberries decreases, Simone increases her purchase of whipped cream.To Simone
A)strawberries and whipped cream are complements.
B)strawberries and whipped cream and substitutes.
C)strawberries and whipped cream are normal goods.
D)strawberries are a normal good and whipped cream is an inferior good.

Question

Quizplus · Accepted Answer

If Simone increases her purchase of whipped cream when the price of strawberries decreases, it indicates that the two goods are complements. When the price of one good decreases, the demand for its complement increases as it becomes relatively cheaper to buy both goods together. Therefore, Option A) strawberries and whipped cream are complements, is the best choice.

Suppose That When the Price of Strawberries Decreases, Simone Increases