📚 Learning Guide
Complementary Goods and Demand
easy

If the price of printers decreases, how is the demand for ink cartridges likely to be affected, assuming they are complementary goods?

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Choose the Best Answer

A

The demand for ink cartridges will increase.

B

The demand for ink cartridges will decrease.

C

The demand for ink cartridges will remain unchanged.

D

The demand for printers will increase but not affect ink cartridges.

Understanding the Answer

Let's break down why this is correct

Answer

When the price of printers goes down, more people are likely to buy them. Printers and ink cartridges are complementary goods, which means they are used together. As more printers are sold, the demand for ink cartridges will likely increase because people will need ink to use their new printers. For example, if a family buys a new printer at a lower price, they will also need to buy ink cartridges to print their documents. Therefore, when the price of one complementary good decreases, the demand for the other good usually increases as well.

Detailed Explanation

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 much ink; It's a common mistake to think that price changes don't affect demand.

Key Concepts

market analysis.
Topic

Complementary Goods and Demand

Difficulty

easy level question

Cognitive Level

understand

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