Q. Pencils and Erasers are an example of complementary goods as they are bought and used together. If there is a rise in the price of the pencils. It will induce which among the following?
Answer: a fall in the demand for erasers
Notes: So, a rise in the price of pencils will induce a fall in the demand for erasers, as they are complementary products. Therefore, the correct answer is option B - a fall in the demand for erasers.