Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The demand for the original good will increase
B
The demand for the original good will decrease
C
The demand for the original good will remain unchanged
D
The demand for the original good will fluctuate unpredictably
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 the demand for the original good. Complementary goods are products that are often used together, like printers and ink cartridges. If the price of ink cartridges goes down, more people might buy printers because they know it will be cheaper to buy ink. As a result, the demand for printers increases because consumers expect to save money on the complementary product. This relationship shows how changes in one market can affect another, highlighting the interconnectedness of supply and demand.
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 of a complementary good makes the original good less popular; It might seem like the demand would stay the same, but that ignores how prices affect choices.
Key Concepts
Demand
Complementary Goods
Elasticity of Demand
Topic
Understanding Demand and Supply
Difficulty
medium level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.