Sunscreen and beach towels are complementary goods. If the price of sunscreen increases, ceteris paribus, _____.(1 point)

Question

Responses

the income of consumers will decrease
the income of consumers will decrease

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 quantity demanded of beach towels will increase for every possible price
the quantity demanded of beach towels will increase for every possible price

Answer 1

If sunscreen and beach towels are complementary goods, an increase in the price of sunscreen would lead to a decrease in the quantity demanded of sunscreen. As a result, consumers would also buy fewer beach towels because they are used together. Therefore, the correct response is:

the quantity demanded of beach towels will decrease for every possible price.