What would happen to the demand for tennis balls if the price of tennis rackets were to increase?
If the price of tennis rackets were to increase, we would expect the demand for tennis balls to decrease. Option D is correct.
Explanation:
Tennis rackets and tennis balls are often used together in the sport of tennis. When the price of tennis rackets increases, it is likely that fewer people would be willing to buy tennis rackets at the higher price. As a result, the demand for tennis rackets would decrease.
Since tennis rackets and tennis balls are complementary goods, a decrease in the demand for tennis rackets would lead to a decrease in the demand for tennis balls as well. People who are buying fewer tennis rackets would also have less incentive to buy tennis balls, resulting in a decrease in the demand for tennis balls.
Hence, option D is the correct answer.