An increase in the price of milk causes a decrease in the demand for cereal. The two products are
a. demand sensitive
b. substitutes
c. demand inelastic
d. complements
Ans: d. complements
Economics
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The impact of crowding out may be the least
A) when real GDP is above but close to potential GDP. B) during a deep recession. C) when real GDP is below but close to potential GDP. D) during an expansion.
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What are the major features of monopolistic competition compared to pure competition and pure monopoly?
What will be an ideal response?
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