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Which of these statements is TRUE of complementary products?

A) An increase in demand for one will cause a decreased demand for the other. B) An increase in the price of one will cause a decrease in the price of the other. C) An increased supply of one product will result in a decreased supply of the other.
D) An increase in the demand for one will usually result in an increased

2 Answers

3 votes

This is an business economics question not history. My replies is that I think it's C.

User Rishabh Mahatha
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2 votes

Considering that complementary goods have a negative cross of elasticity, it is correct to assume that the increase of the price or demand of one goods will result in an increase of price and demand of the other.

By that only, we can rule out answers A and B.

Since the products, as the name states, are complementary, there is no logic associated with the idea of consuming more of one good meaning less of the other (considering what was stated above), so it can't be the letter C.

It is D


"An increase in the demand for one will usually result in an increased demand for the other"


User Felipe Conde
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