If Goods a and B Are Complements, What Will Result

question 187

Multiple Choice

If goods A and B are complements, what will result from an increase in the price of A?

• A) more A and more B is sold
• B) more A and less B is sold
• C) less A and more B is sold
• D) less A and less B is sold

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Definitions:

FOB Origin Pricing

A term used in shipping indicating that the buyer takes responsibility for shipping costs and risk of loss from the seller’s location.

Freight-Absorption Pricing

A pricing strategy where the seller absorbs all or part of the freight charges to encourage business in competitive markets or remote locations.

Resale Price Maintenance

An agreement between a supplier and a retailer in which the retailer agrees to sell a product at a specific price or above.

Discount Consumer Electronics

Retail or online stores offering electronic goods at reduced prices, typical of items that are surplus, refurbished, or off-season.