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If good P and Q are jointly demanded, an increase in the ...

If good P and Q are jointly demanded, an increase in the price of P will likely

A.

Leave the demand for Q constant but reduce the quantity demanded of P

B.

Reduce the quantity of P but increase the Price of Q

C.

Increase the quantity supplied of Q

D.

Decrease the quantity demanded of Q

Correct answer is D

Joint demand is when you need two goods because they work together. If two goods are in joint demand they will have a high and negative cross elasticity of demand. This means a rise in the price of one will lead to a decrease in the demand for the other. Therefore option D is correct. An increase in the price of P, will lead to a decrease in the quantity demanded of Q.