Vidyalelo
Commerce · Q291

Economics

Graduate and Post Graduate · Commerce · question 291

Q291

If two goods are complements, this means that a rise in the price of one commodity will induce

A.
An upward shift in demand for the other commodity
B.
A rise in the price of the other commodity
C.
A downward shift in demand for the other commodity
Answer
D.
No shift in the demand for the other commodity

Answer: Option C

Solution

Answer: Option C
Solution:
If two goods are complements, this means that a rise in the price of one commodity will induce a downward shift in demand for the other commodity.