Question

Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect Andy's demand for ____________.

Answer 1

Andy's demand for beer will increase.

Step-by-step explanation:

Andy’s demand for beer will increase because it is given that pizza and beer are complements. Therefore, there is an inverse relationship between the price of one complement goods and the number of other complement goods. Here, we can see that price of one good ( say pizza) decreases so the demand for other goods (say beer) will increase because there is an inverse relationship between these commodities.