Question

If cream cheese and bagels are complements, then an increase in the price of cream cheese will __________ the demand for bagels. a) increase b) not change c) increase or decrease d) decrease

Answer 1

If cream cheese and bagels are complements, then an increase in the price of cream cheese will increase the demand for bagels.

What are complement goods?

Complement goods are goods that can be used to substitute for each other.

When the price for a substitute increase, the demand for the complement also increase.

Therefore,

If cream cheese and bagels are complements, then an increase in the price of cream cheese will increase the demand for bagels

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