Goods a and B Are Complementary Goods

question 265

Multiple Choice

Goods A and B are complementary goods. A decrease in price of good A has occurred. In the market for good B, this will lead to

• A) an increase in price and a decrease in quantity.
• B) an increase in price and an increase in quantity.
• C) a decrease in price and a decrease in quantity.
• D) a decrease in price and an increase in quantity.

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Definitions:

Administered Vertical Marketing System

A coordinated marketing channel where a single member coordinates activities, without formal agreements, to increase efficiency and effectiveness.

Contractual Agreements

Legally binding contracts or understandings between two or more parties outlining the terms and conditions of a business arrangement.

Marketing Chain

A system of intermediaries or channels through which goods and services pass from the manufacturer to the end consumer.

Service-Sponsored Retail Franchise System

A franchising model where franchisors provide a full range of services including brand, operational guidelines, and ongoing support to the franchisee, often seen in retail.