What Happens to the Demand for a Good If a Complement's

question 179

Multiple Choice

What happens to the demand for a good if a complement's price increases?

• A) The demand decreases and the demand curve shifts rightward.
• B) The demand increases and the demand curve shifts rightward.
• C) The demand decreases and the demand curve shifts leftward.
• D) The demand increases and the demand curve shifts leftward.
• E) There is no impact on demand for the good and the demand curve does not shift.

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Definitions:

Installment Contract

A contract that requires payments to be made in regular intervals over a period in exchange for goods or services.

Net Realizable Value

The estimated selling price in the ordinary course of business minus the costs of completion, disposal, and transportation.

Repossessed

The act of taking back an asset, typically used when a borrower fails to make payments on a secured loan.

Deferred Gross Profit

Profit on installment sales that is not recognized immediately but deferred and recognized as payment is received.