Suppose Good 1 and Good 2 Are Complements

question 19

Multiple Choice

Suppose good 1 and good 2 are complements. If the price of good one decreases, this will cause:

• A) a decrease in demand for good 1.
• B) an increase in demand for good 2.
• C) an increase in the demand for good 1.
• D) a decrease in demand for good 2.

---

Definitions:

Proposal

A formal suggestion or plan put forward for consideration or discussion by others.

Percentage

A way of expressing a number as a fraction of 100, used to compare proportions or calculate ratios.

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is unattainable.

Tax

Compulsory financial obligation or different form of levy placed on a taxpayer by a government entity to finance public spending.