Question

Coffee and cream are complements. if the price of coffee increases, this will cause:

a) An upward movement (decrease in quantity demanded) along the demand curve for coffee.

b) A downward movement (increase in quantity demanded) along the demand curve for coffee.

c) An upward shift in the demand curve for coffee.

d) A downward shift in the demand curve for coffee.

Answer 1

If the price of coffee increases, it will cause a downward movement (increase in quantity demanded) along the demand curve for coffee.

Step-by-step explanation:

In the case of coffee and cream being complements, if the price of coffee increases, it will cause a downward movement (increase in quantity demanded) along the demand curve for coffee. This is because when the price of coffee rises, people are less likely to buy as much coffee and therefore demand for coffee decreases. As a result, the quantity demanded of coffee decreases along the demand curve.