Answer to Question #283820 in Microeconomics for Abhay Yadav

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

Complementary goods are goods used together. When the price of one good rises, demand for the other falls, as people are unlikely to utilize the complement on its own. It's the same with the circumstance of a cold drink and pizza. The result when the price of cold drink rises on pizza is that ; supply remains the same, demand decreases, the quantity supplied and quantity demanded decrease, and the price falls.