Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The demand decreases for the related good
B
The demand remains unchanged
C
The demand increases for the related good
D
The demand becomes perfectly elastic
Understanding the Answer
Let's break down why this is correct
Answer
When the price of a complementary good decreases, it usually leads to an increase in demand for the related good. Complementary goods are products that are often used together, like printers and ink cartridges. For example, if the price of ink cartridges goes down, more people might buy them, and this could encourage them to buy more printers too, since they can now afford the ink. As more people buy printers, the demand for printers increases. This relationship shows how changes in the price of one good can influence the market for another related good.
Detailed Explanation
When the price of a complementary good goes down, people buy more of it. Other options are incorrect because Some might think that a lower price means less demand for the related good; It might seem like the demand stays the same, but that's not right.
Key Concepts
shifts in demand
complementary goods
Topic
Market Demand and Equilibrium Changes
Difficulty
medium level question
Cognitive Level
understand
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