Question

8. If coffee and milk are complements, then which of the following will occur if the price of
coffee increases?
A) The quantity of coffee demanded will increase.
B) The quantity of coffee supplied will decrease.
C) The demand for milk will increase.
D) The demand for milk will decrease.​

Answer 1

Explanation:

Option (A)

The quantity of coffee demanded will increase

Answer 2

D) The demand for milk will decrease. is the correct answer.

• Complementary goods are the goods that are associated with each other. In such goods, demand of one increases the demand of others.
• As per the question, since coffee and milk are complementary, increase in price of coffee will decrease it's usage.
• Since demand of coffee decreases, demand for milk will also decrease.