If Coffee and Cream Are Complements, an Increase in the Price

question 62

Multiple Choice

If coffee and cream are complements, an increase in the price of coffee will cause

• A) the demand for cream to increase.
• B) the demand for cream to fall.
• C) the demand for coffee to fall.
• D) no change in the demand for cream; only quantity demanded would be affected.

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Definitions:

Reed Bank

A submerged reef in the South China Sea, known for its disputed territorial claims and rich natural resources.

Repossession

The process by which a creditor takes back property or goods from the borrower due to failure to make scheduled payments.

Defaulted

Refers to failing to fulfill a legal obligation, especially failure to pay a debt or appear in court as required.