Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x . Assume that P = $8, I = 200, and P x = $10.
-If the quantity demanded of product S increases as the price of product T decreases, then S and T are complements.

Question

Quizplus · Accepted Answer

If the demand for product S increases when the price of product T decreases, it indicates that consumers buy more of S when T becomes cheaper, suggesting that S and T are used together, making them complements.

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation