Sweatshirts and Tee-Shirts Are Complements in Consumption and the Price

question 37

Multiple Choice

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases. As a result, the demand for

• A) sweatshirts will increase that is, the demand curve will shift rightward.
• B) tee-shirts will increase that is, the demand curve will shift rightward.
• C) sweatshirts will decrease that is, the demand curve will shift leftward.
• D) tee-shirts will decrease that is, the demand curve will shift leftward.

---

Definitions:

Utility

The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a collection of goods and services).

Behavioral Economics

A field of economics that studies how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.

Limited Knowledge

The state of having restricted information or understanding about a subject or situation, emphasizing incomplete or finite expertise.

Behavioral Economists

Behavioral economists study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical economics.