Question

1. The price of hand sanitizer, a complement for face masks, increases. What happens in the market for face masks?

a. Demand increases

b. Demand decreases

c. Supply increases

d.Supply decreases

2. In the market for textbooks, the price elasticity of demand is −0.64. If the price of textbooks increases by 15%, what is the percent change in the quantity demanded?

Group of answer choices

a. 14.36%

b. −9.6%

c. −23.44%

d. Not enough information to determine

Answer 1

1.

Complements are those good which complete each other

for example bread and butter, pen and paper

Here the hand sanitizer and face mask are complements to each other

If the price of hand sanitizer increases it means the demand for hand sanitizer will decrease

This will lead to decrease in the demand of face mask as well because people will find it more expensive to buy

here the supply will not be affected so much

So the correct answer here is option B