📚 Learning Guide
Inferior and Complementary Goods
hard

If the price of a complementary good rises, it will always lead to an increase in demand for an inferior good, regardless of consumer income levels.

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose 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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