Question

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n) a. decrease in the demand for printers and a decrease in the quantity supplied of printers. b. decrease in the equilibrium price of printers and an increase in the equilibrium quantity of printers. c. increase in the equilibrium price of printers and a decrease in the equilibrium quantity of printers. d. decrease in the supply of printers and a decrease in the quantity demanded of printers.

Answer 1

Answer: Option (a) is correct.

Explanation:

The complimentary goods are the goods which are used together to satisfy a given want. There is an inverse relationship between the price and demand of complimentary goods.

Suppose there are two complimentary goods such as computers and printers. So, an increase in the price of computers will lead to reduce the demand for printers because both are used together. Hence, there is a fall in the quantity supplied of printers. Alternatively, a decrease in the price of computers will lead to increase the demand for printers because both are used together.