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 supply of printers and a decrease in the quantity demanded of printers.
c. decrease in the equilibrium price of printers and an increase in the equilibrium quantity of printers.
d. increase in the equilibrium price of printers and a decrease in the equilibrium quantity of printers.

Answer 1

Answer:

The answer is: A) Decrease in the demand for printers and a decrease in the quantity supplied of printers.

Explanation:

Since computers and printers are complimentary products, the increase in the price of computers will decrease the quantity demanded of computers and printers. Since the quantity demanded for printers will decrease, the quantity supplied should also decrease.