Question

If products A and B are complements and the price of B decreases, the A. demand curves for both A and B will shift to the left. B. amount of B purchased will increase, but the demand curve for A will not shift. C. demand for A will increase and the quantity of B demanded will increase. D. demand for A will decline and the demand for B will increase.

Answer 1

Answer:

The correct answer is option C.

Explanation:

Products A and B are complements and the price of B decreases. This decrease in the price of good B will lead to an increase in its quantity demanded. This will cause a downward movement on its demand curve.

Since A and B are complements, they are used together. So the demand for good A will increase as well. This will be indicated by a rightward shift in the demand curve of A.