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Milk and cereal are an example of complementary goods. Which definition best describes this relationship? a....

Milk and cereal are an example of complementary goods.

Which definition best describes this relationship?

a. goods related in such a way that an increase in price of one leads to an increase in the demand for the other

b. goods related in such a way that an increase in quantity demanded of one leads to a increase in the price of the other

c. goods related in such a way that an decrease in price of one leads to a decrease in the demand for the other

d. goods related in such a way that an increase in price of one leads to a decrease in the demand for the other

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Answer #1

Answer

Option d

d. Goods related in such a way that an increase in the price of one leads to a decrease in the demand for the other

the two good are complementary means consumed together so increase in the price of a good decreases quantity of the good and decreases demand for the other good because the good is consumed in proportion.

the relationship of one's price and other's quantity is inversely related

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