When the price of coffee beans increased in the mid-1970s,restaurants that raised the price of a cup of coffee experienced a decrease in demand for donuts because donuts and coffee are

Question

Quizplus · Accepted Answer

Donuts and coffee are complementary goods, meaning they are often consumed together. An increase in the price of coffee would lead to a decrease in demand for donuts as consumers may be less willing to pay the higher price for both items.

When the Price of Coffee Beans Increased in the Mid-1970s,restaurants