Question
what is the correct answer?
7. Buyers consider Marlboro cigarettes and Budweiser beer to be complements. If Marlboro just increased its prices, what would you expect to occur in the Budweiser market? a. Demand would rise, and Budweiser would reduce price. b. Demand would fall, and Budweiser would reduce price. Demand would fall, and Budweiser would increase. d. Demand would rise, and Budweiser would increase supply. 8. Which of the following is the reason for the existence of consumer surplus? a. Consumers can purchase goods that they want in addition to what they need. b. Consumers can occasionally purchase products for less than their producti01 cost. C. Some consumers receive temporary discounts that result in below - market prices. d. Some consumers are willing to pay more
Explanation / Answer
Answer C. Demand would fall, Bodweiser would increase the price.
