Author Question: Two goods, X and Y, are complementary goods if the demand for X: a. increases when the price of Y ... (Read 95 times)

maychende · **on:** Jun 30, 2018

Two goods, X and Y, are complementary goods if the demand for X:
a. increases when the price of Y increases.
b. increases when income increases.
c. decreases when the price of Y increases.
d. increases as the price of its substitute good increases.
e. decreases as the price of its substitute good decreases.

Question 2

Assume that peanut butter and jelly are complementary goods. A decrease in the number of peanut butter suppliers will cause the:
a. demand for peanut butter to increase.
b. supply of peanut butter to increase.
c. demand for jelly to increase.
d. demand for jelly to decrease.
e. supply of jelly to decrease.