A decrease in demand for cameras would likely be caused by A. an increase in the price of cameras. B. a decrease in the price of cameras. C. an increase in the price of a substitute good. D. an increase in the price of a complementary good.

Respuesta :

Answer:

Option (D) is correct.

Explanation:

For example:

Suppose there are two complimentary goods: Cameras and lens.

Complimentary goods refers to the goods which are used together to satisfy a given want. If there is an increase in the price of lens then as a result the demand for cameras decreases and if there is a fall in the price of lens then as a result the demand for cameras increases. This clearly shows that there is an inverse relationship between the price of lens and demand for cameras.

The price and demand have an inverse relation. Due to this phenomenon, the decrease in demand for cameras is caused by an increase in the price of complementary goods. Thus option D. is correct.

What are complementary goods?

The complementary goods are the add-on goods those are ought to be used along with the main product, this is done to satisfy the needs and wants of the users.

In the given case the complementary goods of cameras are lenses and films.

When the price of lenses and films will increase then due to this the demand for cameras will reduce. This is because the lenses are compulsorily used with the cameras.

Therefore, when the price of complementary goods will increase the demand for the main product will decrease.

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