ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Her quantity demanded of gym classes won’t change, and her demand for t-shirts will increase.
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Her quantity demanded of gym classes will increase, and her demand for t-shirts will increase.
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Her quantity demanded of gym classes will decrease, and her demand for t-shirts will decrease.
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Her quantity demanded of gym classes will increase, and her demand for t-shirts will decrease.
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Her quantity demanded of gym classes will decrease, and her demand for t-shirts will be unaffected.
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Detailed explanation-1: -Her quantity demanded of gym classes will decrease, and her demand for t-shirts will decrease.
Detailed explanation-2: -Pam considers t-shirts and gym classes to be complementary goods. How will Pam react if the price of gym classes increase? Her quantity demanded of gym classes will increase, and her demand for t-shirts will increase.
Detailed explanation-3: -The demand for a good decreases, if the price of one of its complements rises.
Detailed explanation-4: -A decrease in the price of complementary goods leads to a increase in the demand for given commodity and vice versa. For example if price of a complementary good (say petrol) decreases, then demand for given commodity (say car) will rise.
Detailed explanation-5: -Demand curve will shift to the left.