PRC-3 · Chapter 10 · Question 24 of 70
Printers and printer ink cartridges are consumed together. If a tech company suddenly decides to give away its printers for free, what will happen to the market for ink cartridges?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The demand for ink cartridges will shift right
Explanation
Printers and ink are complementary goods. If the price of printers falls (to zero), more people will own printers, drastically increasing the demand for the complementary ink.
More Demand, Supply and Market Equilibrium MCQs
- Q26A major breakthrough in battery technology drastically cuts the cost of manufacturing electric vehicles (EVs). What is the immediate…
- Q27The government enforces a strict minimum wage law (a price floor) that is significantly higher than the current free-market equilibrium…
- Q28In an attempt to make housing affordable, a city places a strict cap on apartment rents (a price ceiling) well below the market…
- Q29Consumers hear a verified news leak that the government will double the tax on mobile phones starting next week. What happens in the…
- Q30Because of a sudden, intense heatwave, the demand for air conditioners skyrockets (shifting right). Simultaneously, a factory strike…