If people demand more of product a when the price of b falls. then a and b are:

Q 1: If people demand more of produce A when the price of product B
falls, then A and B are:

A-
not related

A-
not related

A-
not related
A- not related

B-
substitutes

B-
substitutes

B-
substitutes
B- substitutes

C- compliments

C- compliments

C- compliments
C- compliments

D-
inferior goods

D-
inferior goods

D-
inferior goods
D- inferior goods Question 2: Higher apple prices will lead to

A-
a decrease in the demand for apples

A-
a decrease in the demand for apples

A-
a decrease in the demand for apples
A- a decrease in the demand for apples

B- a decrease in the quantity demanded of apples

B- a decrease in the quantity demanded of apples

B- a decrease in the quantity demanded of apples
B- a decrease in the quantity demanded of apples

C- an increase in the demand for apples

C- an increase in the demand for apples

C- an increase in the demand for apples
C- an increase in the demand for apples

D- an increase in the quantity demanded of apples

D- an increase in the quantity demanded of apples

D- an increase in the quantity demanded of apples
D- an increase in the quantity demanded of apples

Q 1:
If people demand more of produce A when the price of product B
falls, then A and B are:
Answer – C- Compliments
The product A and B must be compliments. In case of compliment
goods when the price of one compliment falls, the demand for
another compliment good will be more. The elasticity will be
negative in case of compliments.
Question 2:
Higher apple prices will lead to
Answer – B- a decrease in the quantity demanded of apples
According to law of demand when the price of a commodity
increases, quantity demanded falls being other things remains
constant. Therefore, there is an inverse relationship between price
and quantity demanded.

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