Question

Which of the following would you expect to decrease the demand for tennis racquets?

A. A decrease in the price of tennis balls which are complements in consumption of tennis
B. An increase in the supply of tennis racquets
C. An increase in the price of tennis racquets
D. None of the above would decrease the demand for tennis racquets

Answer 1

C) An increase in the price of tennis racquets

Step-by-step explanation:

If tennis racquets become more expensive, the demand for them will decline, and people will try to supply this need with substitutes, for example, lacrosse raquets. The reason for this is that the classical supply and demand model tells us that demand and price are inversely correlated: if the price goes up, demand goes down, and viceversa.