Figure 4-7
-Suppose you like banana cream pie made with vanilla pudding. Assuming all other things are constant, you notice that the price of bananas is higher. How would your demand for vanilla pudding be affected by this?

Question

Figure 4-7 
-Suppose you like banana cream pie made with vanilla pudding. Assuming all other things are constant, you notice that the price of bananas is higher. How would your demand for vanilla pudding be affected by this?

Quizplus · Accepted Answer

The increase in the price of bananas, which is a complement to vanilla pudding, would decrease the demand for vanilla pudding.

Figure 4-7 -Suppose You Like Banana Cream Pie Made with Vanilla Pudding