ATT 649 PM Notes Widgets and bags are compliments then an in

AT&T; 6:49 PM Notes Widgets and bags are compliments, then an increase in price of widgets. A. Result in decrease in price of bags B. Result in decrease in demand of bags C. Result in increase in price If bags D. Result in decrease in quantity demanded of bags

Solution

Since widgets and bags are complementary goods so there will be inverse relationship between price of widgets and demand of bags.

So when price of widget increases, then demand of bags decreases.

There will be not decrease in quantity demanded of bag because it happen due to change in own price of bag and here bag price is same.

Hence option B is the correct answer.