ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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independent goods
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substitute goods
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complementary goods
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None of the above
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Detailed explanation-1: -This means that an increase in the price of one good decreases the demand for another good. Therefore, if peanut butter and jelly are complements, when the price of peanut butter increases, the demand for peanut butter will decrease.
Detailed explanation-2: -Peanut butter The price of jelly increases. When the price of jelly increases, the quantity demanded of jelly decreases. Because peanut butter and jelly are complementary goods, you will also want less peanut butter. Thus, the demand for peanut butter decreases.
Detailed explanation-3: -Peanut butter and jelly are frequently used together in sandwiches and are thus considered complements.
Detailed explanation-4: -Complementary goods are goods/services that are typically used together, for example keyboard and computers, tennis balls and rackets, and milk and cookies. When the price of a certain good decreases, the demand for its complementary good will increase.
Detailed explanation-5: -Peanut butter and jelly are complements. A decrease in the price of one will result in: An increase in the demand for the other.