14 Views

Question : If coffee and milk are complementary, which of the following will happen if coffee prices rise?
a) The amount of coffee demanded will increase.
b) The amount of coffee supplied will be reduced.

Option 1: A true 

Option 2: B true

Option 3: Both A and B are true 

Option 4: Both are false


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 7th Jan, 2024

Correct Answer: B true


Solution : The cross elasticity of demand for complementary goods will be negative. When the price of one good rise, the demand for both complementary goods falls.
The amount of coffee supplied will be reduced.
Hence B is true.

Related Questions

UPES B.Tech Admissions 2026
Apply
Ranked #43 among Engineering colleges in India by NIRF | Highest Package 1.3 CR , 100% Placements
UPES Integrated LLB Admission...
Apply
Ranked #18 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS Rankings | 16 LPA Highest CTC
Presidency University MBA Adm...
Apply
NAAC A+ Accredited | Highest CTC 10 LPA | Top Recruiters : Amazon, Accenture, KPMG, EY, Capgemini & many more
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC | Ranked 33rd by NIRF 2025
UPES M.Tech Admissions 2026
Apply
Ranked #45 Among Universities in India by NIRF | 1950+ Students Placed 91% Placement, 800+ Recruiters
UPES | BBA Admissions 2026
Apply
#36 in NIRF, NAAC ‘A’ Grade | 100% Placement, up to 30% meritorious scholarships
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books