Question

When the price of a particular good increases demand for normal goods rises. demand for complementary...

When the price of a particular good increases

demand for normal goods rises.
demand for complementary goods falls.
demand for substitute goods falls.

Homework Answers

Answer #1

Option 2

demand for complementary goods falls.

Price of a good and the quantity of the good is related if the good is complementary or substitute. Complementary goods are used together, so the increase in the price of one decreases the demand for others.

Commentary goods are used in option means one instead of others, so increase in the price of one increases demand for others.

Price and demand for normal good are not related, the price and quantity demanded are related.

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