Question

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Sunscreen and beach towels are complementary goods. If the price of sunscreen increases, ceteris paribus,

A the income of consumers will decrease

B the quantity demanded of beach towels will increase for every glassible price

C the income of consumers will increase

D the quantity demanded of beach towels will decrease for every possible price

Answer 1

Answer:

the income of consumers will increase

Answer 2

In the case of the complementary goods, if the price of the sunscreen rises so the quantity demanded of beach towels should be reduced.

The following information should be considered:

• The complementary goods are those goods that are used together. Like pen & paper, etc.
• For this good, it has an inverse relationship between the price and the quantity demanded.
• It means that if the price is increased so the quantity demanded should be reduced.

Therefore, we can conclude that the option d is correct.

Learn more about the price here: brainly.com/question/19091385