Question

Krista considers bread and butter to be complements. what would happen if she sees that the price of bread has gone up?

Answer 1

If the price of bread goes up, the demand for bread and butter would go down as shown in option 1.

Why does it happen?

• Because the increase in the price of bread decreases the demand for it.
• Because customers would be less interested in buying bread.
• Because products that are consumed together with bread would be less sought after by customers.

Demand refers to customer interest in products. The increase in the price of the products causes this interest to decrease, causing the demand for the product to decrease.

When the demand for a product decreases, the demand for complementary products also decreases. Therefore, if the price of bread increases, the demand for bread decreases, and the demand for butter also decreases.

Learn more about demand:

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