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?
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.

 

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