Ham and eggs are complements. If the price of ham rises, the demand for eggs will
A) increase or decrease but the demand curve for ham will not change.
B) decrease and the demand curve for ham will shift rightward.
C) not change but there will be a movement along the demand curve for eggs.
D) decrease and the demand curve for eggs will shift leftward.
Question 2
Which is the most likely effect upon the market for cotton of a significant improvement in the quality of synthetic textiles?
A) A decrease in demand and hence a decrease in both the price of cotton and the quantity exchanged.
B) A decrease in demand and hence a decrease in the price of cotton and an increase in the quantity exchanged.
C) A decrease in demand and hence an increase in the price of cotton and a decrease in the quantity exchanged.
D) A decrease in both demand and supply and hence a decline in the quantity exchanged but no predictable change in the price of cotton.
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