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2 December, 13:13

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a (n)

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  1. 2 December, 13:45
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    Answer: decrease in the demand for printers and a decrease in the quantity supplied of printers.

    Explanation: Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a fall in the price of printers. When the price of a complementary good rise, the consumer buys less of the other good as well. So, a rise in the price of computers will lead to a fall in the demand for printers. The net result will be a fall in the price of printers and a decrease in the quantity supplied of printers.
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