Which would cause an increase in the demand for product A?Multiple Choicean increase in the cost of producing product Aa decrease in the price of a complementary product Ba decrease in the number of suppliers of product Ba decrease in the price of product A
Question
Which would cause an increase in the demand for product A?Multiple Choicean increase in the cost of producing product Aa decrease in the price of a complementary product Ba decrease in the number of suppliers of product Ba decrease in the price of product A
Solution
A decrease in the price of a complementary product B would cause an increase in the demand for product A.
Here's why:
Complementary goods are products that are often used together. For example, if product A is peanut butter and product B is jelly, they are complementary because they are often used together to make a sandwich.
If the price of jelly (product B) decreases, people might buy more jelly. And if people are buying more jelly, they will also need more peanut butter (product A) to go with it. Therefore, the demand for peanut butter (product A) increases.
So, the correct answer to your multiple choice question is: "a decrease in the price of a complementary product B".
Similar Questions
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