Practice Questions
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If the price of printers decreases, how is the demand for ink cartridges likely to be affected, assuming they are complementary goods?
When printers cost less, more people buy them. Other options are incorrect because Some might think that if printers are cheaper, people won't need as...
How does an increase in the price of one complementary good affect the demand curve of its pair in market analysis?
When the price of one complementary good goes up, people buy less of it. Other options are incorrect because Some might think that higher prices mean ...
How does the substitution effect influence the demand for complementary goods when the price of one good decreases?
When the price of one good goes down, people buy more of it. Other options are incorrect because Some might think that if one good is cheaper, people ...
If the price of printer paper decreases significantly, what is the most likely effect on the demand for printers, assuming printer paper and printers are complementary goods?
When printer paper costs less, more people will buy it. Other options are incorrect because Some might think that lower paper prices would make printe...
If the cross-price elasticity of demand between two goods is negative, what does this indicate about their relationship?
A negative cross-price elasticity means that when the price of one good goes up, the demand for the other good goes down. Other options are incorrect ...
Which of the following pairs of goods are considered complementary goods?
Cars and gasoline are complementary goods. Other options are incorrect because Some people think coffee and sugar are complementary; Bread and butter ...
What happens to the demand curve of a complementary good when the price of its complement decreases?
When the price of a complementary good goes down, people buy more of it. Other options are incorrect because Some might think that lower prices mean l...
How does the price elasticity of demand for a product typically affect the demand for its complementary goods?
When the price of a product goes up, people buy less of it. Other options are incorrect because This answer suggests that higher prices lead to more d...
If the price of coffee increases, what is likely to happen to the demand for muffins?
When coffee costs more, people might buy less coffee. Other options are incorrect because Some might think that if coffee is more expensive, people wi...
If the price of muffins increases, what is the likely impact on the demand for coffee, which is a complementary good?
When muffins cost more, people buy fewer muffins. Other options are incorrect because Some might think that if muffins are more expensive, people will...
Arrange the following steps in the correct order to analyze the impact of a price increase in muffins on the demand for coffee, a complementary good.
Muffins and coffee are complementary goods. Other options are incorrect because Calculating cross-price elasticity comes later; You need to understand...
Which of the following statements correctly describe the relationship between complementary goods? Select all that apply.
Complementary goods are items that are used together. Other options are incorrect because This suggests that if muffins cost more, people will buy les...
When the price of muffins increases, the demand for coffee is likely to ______, indicating that these goods are complementary.
When muffins cost more, people buy fewer muffins. Other options are incorrect because Some might think that if muffins are more expensive, people will...
A local coffee shop notices that after increasing the price of their muffins, the demand for coffee has decreased significantly. Which of the following explanations best applies to this scenario regarding complementary goods?
When muffins cost more, people might not buy them and coffee together. Other options are incorrect because This answer suggests that higher muffin pri...
If the price of coffee increases, what is likely to happen to the demand for muffins, and why?
When coffee prices go up, fewer people buy coffee. Other options are incorrect because This answer suggests that more coffee means more muffins; This ...
If the price of muffins increases, what is likely to happen to the demand for coffee?
Muffins and coffee are complementary goods. Other options are incorrect because This answer suggests that people will switch to coffee instead; This a...
Muffins:Coffee :: Cars:?
Muffins and coffee are often enjoyed together. Other options are incorrect because Bicycles are not needed for cars; Public transport is an alternativ...
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