Answer to Question #283644 in Microeconomics for Rana

Question

Cold Drink and pizza are complements because they

are often enjoyed together. When the price of

Cold Drink rises, what happens to the supply, demand,

quantity supplied, quantity demanded, and the

price in the market for pizza?

Answer 1

Cold Drink and pizza are complementary goods because they are often enjoyed together. If the price of Cold Drink rises then its quantity demanded decreases as well as the demand for the pizza also decreases.

The supply of pizza will be unchanged but its quantity supplied and quantity demanded will be declined in the market. The price of pizza will be also failed due to rise in price and demand of its complementary good (cold drink). In case of rise in the price of Cold Drink, the compliments will become expensive for the customer that will create adverse impact on the quantity demanded.