Asked by
grace vuong
on Dec 11, 2024Verified
If an increase in the price of peaches reduces the demand for cream, this indicates that peaches and cream are
A) normal goods.
B) inferior goods.
C) complements.
D) substitutes.
Complements
Goods or services that are used together, such that an increase in demand for one typically increases demand for the other.
Demand for Cream
The consumer interest and willingness to purchase cream, influenced by culinary trends, diet preferences, and availability of substitute products.
- Understand the principle of complementary and substitute goods and the impact of price variations on demand.
Verified Answer
SR
Learning Objectives
- Understand the principle of complementary and substitute goods and the impact of price variations on demand.