Answer to Question #277028 in Microeconomics for Aish

Question

Cold drinks and pizza are complements because they are often enjoyed together. When the price of cold drinks rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza?

Answer 1

Solution:

When the price of cold drinks increases, the quantity demanded for pizza will also reduce since the compliments will become expensive. The price in the market for pizza will increase, including the supply of pizza in the market.

Producers tend to supply more of a product when its price is high.