Question

Ceteris paribus, a change in the price of a commodity causes the quantity demanded of its complements to move:

• A. In the same direction
• B. In the opposite direction
• C. In an insignificant manner
• D. Cannot be determined

Answer 1

Answer: (B)

In the opposite direction

Quantity demanded of the complements (complementary goods) of a commodity always moves in the opposite direction in comparison to the price of the commodity, implying inverse relation between the price of a commodity and the demand for its complementary goods.