167k views
3 votes
You work at a restaurant/bar. -Your boss comes to you, knowing you are studying

economics, and asks for your opinion on the following question:
Which of the following would increase the demand for drinks the most? Explain in
detail why.
A. a reduction in the price of a complementary good such as an appetizer
B. a reduction in the price of drinks

1 Answer

4 votes
A reduction in the price of drinks would increase the demand for drinks the most. This is because when the price of a good is reduced, consumers are more likely to purchase it since it is now more affordable. Furthermore, when the price of drinks is lowered, consumers have more disposable income to spend on other goods, including drinks. This increases the demand for drinks as customers are able to purchase more drinks at a lower price.
User MaZoli
by
7.4k points