Suppose the demand for widgets is given by QD = 100 - 5p - pd + 2I,where I is average consumer income,p is the price of lemons,and pd is the price of doodads.According to this equation,doodads are a(n)________ for widgets.
A) substitute
B) complement
C) input
D) None of the above.

Question

Quizplus · Accepted Answer

The negative coefficient of pd in the demand equation indicates that as the price of doodads (pd) increases, the demand for widgets (QD) decreases, suggesting that doodads are substitutes for widgets.

Suppose the Demand for Widgets Is Given by QD =