Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
True
B
False
C
It depends on the consumer's overall budget
D
It only applies to luxury goods
Understanding the Answer
Let's break down why this is correct
Answer
Complementary goods are products that are often used together, like printers and ink cartridges. When the price of a complementary good goes up, people might buy less of that good because it costs more. For example, if the price of ink cartridges rises, some people might choose to print less, which means they won't need to buy as many printers. However, if they still need to print but can’t afford expensive options, they might turn to cheaper or inferior goods, like a basic printer model. This shift happens because people look for alternatives when prices change, showing how the demand for inferior goods can increase even when consumer incomes vary.
Detailed Explanation
When the price of a complementary good goes up, people buy less of it. Other options are incorrect because This answer suggests that the demand for inferior goods will always increase; This option implies that the overall budget is the only factor.
Key Concepts
Inferior Goods
Complementary Goods
Consumer Behavior
Topic
Inferior and Complementary Goods
Difficulty
hard level question
Cognitive Level
understand
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