Question

Sunscreen and beach towels are complementary goods. If the price of sunscreen increases, ceteris paribus, _____.(1 point) Responses the quantity demanded of beach towels will increase for every possible price the quantity demanded of beach towels will increase for every possible price the quantity demanded of beach towels will decrease for every possible price the quantity demanded of beach towels will decrease for every possible price the income of consumers will increase the income of consumers will increase the income of consumers will decrease

Answer 1

If sunscreen and beach towels are complementary goods, an increase in the price of sunscreen will lead to a decrease in the quantity demanded of sunscreen. Since consumers use both goods together, a decrease in the quantity demanded of sunscreen will also lead to a decrease in the quantity demanded of beach towels.

Therefore, the correct response is: the quantity demanded of beach towels will decrease for every possible price.