ECON 201- Ch. 3 Section 4 Questions: Quiz 14 - Substitutes and Complements
Which of the following would most likely increase the demand for televisions?
A decrease in the price of streaming services such as Netflix, a product that is complementary with televisions
If an increase in the price of peaches reduces the demand for cream, this indicates that peaches and cream are
Complements.
If salsa and nacho chips are complements, an increase in the price of nacho chips would
Decrease the demand for salsa.
Assume that eggnog and Christmas cookies are complements. If the price of eggnog goes up, what happens to the demand for Christmas cookies?
Demand for cookies decreases
Assume that black beans and rice are staples in the diet of one particular family. How could you tell if these goods were complements, substitutes, or unrelated goods?
If the price of black beans rose and the consumption of rice increased, they would be substitutes.
If the price of coffee decreases, the demand curve for tea (a substitute good) will
Shift to the left.
If coffee and cream are complements, an increase in the price of coffee will cause
The demand for cream to fall
The current demand for a good would decrease if
The price of a complementary good rose.
Saccharin and aspartame are both low-calorie substitutes for sugar. If saccharin is found cause cancer,
The price of aspartame will increase.
If an increase in the price of good X causes the demand for good Y to decrease, this indicates that
X and Y are complements.
