Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The demand for printers will decrease
B
The demand for printers will remain unchanged
C
The demand for printers will increase
D
The demand for printers will fluctuate unpredictably
Understanding the Answer
Let's break down why this is correct
Answer
When the price of printer paper decreases significantly, people are likely to buy more paper because it's cheaper. Since printers and printer paper are complementary goods, this increase in paper purchases will lead to more people wanting to buy printers as well. For example, if someone sees that paper is now much cheaper, they might decide to buy a printer so they can take advantage of the lower paper prices. This means that the demand for printers will likely increase because more people will want to print things. Overall, a drop in the price of one complementary good can lead to higher demand for the other.
Detailed Explanation
When printer paper costs less, more people will buy it. Other options are incorrect because Some might think that lower paper prices would make printers less popular; It's a common mistake to think that price changes don't affect demand.
Key Concepts
complementary goods
shift in demand
market analysis.
Topic
Complementary Goods and Demand
Difficulty
hard level question
Cognitive Level
understand
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