Question

05 multiple choice
if consumers expect prices to increase in the future what will happen to their demand in the present?
their demand later will increase
their demand now will increase
their demand will stay the same
there is no relationship between future expectations and demand

Explanation:

For the first question, goods that are commonly bought together are complementary goods. The other options are incorrect as interchangeable goods are substitutes, "exact same" is too extreme, and being sold together is different from being commonly bought together. For the second question, when consumers expect prices to increase in the future, they tend to buy more in the present to avoid higher - priced purchases later, so demand in the present increases. The option stating no relationship is incorrect.

Answer:

1. It means that the two goods are commonly bought together.
2. Their demand now will increase