A significant increase in the price of tennis balls will most likely lead to

Question

Quizplus · Accepted Answer

If the price of tennis balls increases, consumers may decide to purchase fewer tennis balls, leading to an inward shift in the demand curve for tennis balls. This, in turn, may result in a decrease in demand for tennis racquets since tennis balls and racquets are complementary goods. Therefore, the best choice is an inward shift in the demand for tennis racquets (Option D). Option A is incorrect because an increase in the price of tennis balls would not necessarily lead to an increase in demand for tennis racquets. Option B is incorrect because an inward shift in demand is the expected outcome when prices increase. Option C is incorrect because there is no direct relationship between the price of tennis balls and the demand for tennis racquets.

A Significant Increase in the Price of Tennis Balls Will