Sugar and coffee are complements. When the price of coffee decreases, the demand for sugar
A) will fall.
B) remains constant.
C) will shift outward.
D) will shift inward.

Question

Quizplus · Accepted Answer

When the price of coffee decreases, people are likely to buy more coffee because it becomes more affordable. Since sugar and coffee are complements, meaning they are often used together, the demand for sugar will increase as more people buy coffee. This is represented by an outward shift in the demand curve for sugar.

Sugar and Coffee Are Complements