Question

The price of printers at the big box tech stores increases as a new type of print tech is rolled out to consumers. which of the follwoing scenario for a complementary printer good would likely take place?

A- the demand for printer ink decreases as less people are buying printers
B- the demand for printer paper rises as pepole stock up

Answer 1

A- the demand for printer ink decreases as less people are buying printers

Step-by-step explanation:

Generally speaking, when the price of a complementary good increases, the quantity demanded for both goods should decrease. If the price decreases, the opposite should happen. Even though the demand for some high tech products behave in strange ways (e.g. first iPhones), usually new products with higher prices will result in a decrease of the demand for that specific product and all complementary products.