A decline in the availability of bicycle handle bars will decrease Huffy Bicycle Company's production of bicycles.Decreased production in turn reduces Huffy's demand for bicycle seats.This is because the products in this situation have _____ demand.

Question

Quizplus · Accepted Answer

The scenario describes a joint demand, where the demand for one product (handle bars) is dependent on the demand for another product (bicycles). As the availability of handle bars declines, the production of bicycles decreases, leading to a decrease in demand for bicycle seats. Joint demand is a characteristic of complementary goods, where the demand for one good is dependent on the demand for another good that is used together with it.

A Decline in the Availability of Bicycle Handle Bars Will