What will cause the demand for a normal product to decrease?
A)The expectation by consumers that future prices will be higher.
B)An increase in the price of a substitute product.
C)An increase in the price of a complementary product.
D)An increase in income levels.
E)An increase in the size of the population.

Question

Quizplus · Accepted Answer

An increase in the price of a complementary product can cause the demand for a normal product to decrease because the products are used together. If the complementary product becomes more expensive, consumers are less likely to buy both products, leading to a decrease in demand for the normal product.

What Will Cause the Demand for a Normal Product to Decrease