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If coffee and creamer are complementary goods, then an increase in the price of creamer, other things being equal, will result in?

1) An increase in the demand for coffee
2) A decrease in the demand for coffee
3) No change in the demand for coffee
4) Cannot be determined without more information

User Ndech
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1 Answer

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Final answer:

If coffee and creamer are complementary goods, an increase in the price of creamer will result in a decrease in the demand for coffee.

Step-by-step explanation:

If coffee and creamer are complementary goods, then an increase in the price of creamer, other things being equal, will result in a decrease in the demand for coffee. Complementary goods are products that are typically consumed together. When the price of one complementary good, in this case, creamer, increases, consumers are less willing to purchase it, which leads to a decrease in the demand for the other complementary good, coffee. For example, if the price of creamer increases, some consumers may choose to drink their coffee black or switch to an alternative beverage, resulting in a lower demand for coffee.

User Tim McNamara
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