Pancyprian Economics Practice Questions - Cyprus Pancyprian Access Examination Economics (ΟΙΚΟΝΟΜΙΚΑ, Code 024) Exam

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Coffee and sugar are complementary goods. If the price of coffee falls significantly, the market for sugar will experience:

a decrease in demand for sugar, shifting its demand curve to the left an increase in demand for sugar, shifting its demand curve to the right a movement down along the sugar demand curve only, with no shift no change, because the price of sugar itself has not changed

Correct Answer:

an increase in demand for sugar, shifting its demand curve to the right

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