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Beer and pizza are complements because they are often enjoyed together. When the price

Chapter 4, Problem Questions for Review 4.8

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QUESTION:

Beer and pizza are complements because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza?

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QUESTION:

Beer and pizza are complements because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza?

ANSWER:

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The goods that are used together or consumed jointly are known as complementary goods. The increase in the price leads of one commodity leads to a decrease in the quantity demanded of the other commodity and vice-versa. 

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