Question

Plasma televisions are a normal good. If the price of a complement falls?, then for plasma televisions

A. quantity demanded increases.
B. demand decreases.
C. demand increases.
D. quantity demanded decreases.

Answer 1

If the price of a complement falls, then the demand for plasma televisions will increase.

Step-by-step explanation:

Plasma televisions are a normal good, which means that as income increases, the demand for plasma televisions increases. If the price of a complement, or a good that is used together with plasma televisions, falls, then the demand for plasma televisions will increase. This is because a lower price for the complement good will make it more affordable and encourage people to buy more plasma televisions.