Peaches and cream are complements.When the price of peaches falls,the equilibrium quantity of cream will ________ and the equilibrium price of cream will ________.

Question

Quizplus · Accepted Answer

When the price of peaches falls, demand for peaches increases due to the lower price. Since peaches and cream are complements, the increased consumption of peaches leads to an increased demand for cream. This increased demand for cream raises both the equilibrium quantity and price of cream.

Peaches and Cream Are Complements