ECONOMICS
SUPPLY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
A
|
|
|
B
|
|
|
C
|
|
|
D
|
Detailed explanation-1: -The demand for a good decreases, if the price of one of its complements rises.
Detailed explanation-2: -Answer and Explanation: Complementary goods have a negative cross-price elasticity of demand. This means that if goods X and Y are complements, then a decrease in the price of X will cause the demand for Y to increase.
Detailed explanation-3: -A decrease in the price of complementary goods will shift the demand curve rightward. It causes an increase in demand for a good or a rightward shift in the demand curve causes an increase in both price and output of a complementary good in an economy.
Detailed explanation-4: -The prices of complementary or substitute goods also shift the demand curve. When the price of a good that complements a good decreases, then the quantity demanded of one increases and the demand for the other increases.