If toast and butler arc complements, then which of the following would increase
ID: 469257 • Letter: I
Question
If toast and butler arc complements, then which of the following would increase the demand for toast? a decrease in the price of toast a decrease in the price of butter an increase in the price of butter Both a) and b) are correct If the price elasticity of demand is 2 (in absolute value), then when the price of Good X rises by 25%, The quantity demanded of Good X rises by 50%. The quantity demanded of Good X Calls by 50%. The quantity demanded of Good X rises by 12.5%. The quantity demanded of Good X falls by 12.5%. If the price elasticity of demand is -0 5. then when the knee of goof X rues by 20%, The quantity demanded of Good X rises by 40%. The quantity demanded of Good X nests by 10% The quantity demanded of Good X falls by 10%. The quantity demanded of Good X falls by 40% If the price elasticity of supply is 4. then when the price of Good X rises by 5%, The quantity supplied of Good X rises by 20%. The quantity supplied of Good X falls by 20%. The quantity supplied of Good X rises by 1.25%. The quantity supplied of Good X tails by 1.25% If the price elasticity of supply is 0.75. then when the price of Good Y falls by 10%, The quantity supplied of Good X rises by 7.5%. The quantity supplied of Good X rises by 133%. The quantity supplied of Good X falls by 7.5% The quantity supplied of Good X falls by 133%.Explanation / Answer
29)
Option B is correct:
In complementary products, a good's demand increases when the the price of other product is decreases. Hence, the demand of toast will increase when the price of butter will decrease.