FSOT Pro

Category - Economics

If the demand for a product X goes down, what happens to the demand for complementary product Y?
  1. The demand for product Y goes up.
  2. The demand for product Y goes down.
  3. The demand for product Y is unaffected.
  4. There is not enough information to answer.
Explanation
Answer: B - If demand for product X goes down, then demand for complementary product Y will also go down. Complementary products go together. For instance, if demand for jelly goes down, the demand for peanut butter will also go down because the two are often used together.
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