Economic questions continued?

Studies have found that an increase in the Federal tax on beer (and thus in increase in the price of beer) would reduce the demand for marijuana. It can be concluded that:


a. beer and marijuana are substitute goods


b. beer and marijuana are complementary goods.


c. beer is an inferior good.


d. marijuana.


For the reader, I have been struggling with this class all semester and unfortunately the class is an online class and there are no tutors available for this class at my school so any help you can offer is appreciated.

Economic questions continued?
The rising price of beer will cause the amount demanded to fall. When the fall or rise in one good results in the same effect in another, the two are complementary.





Here is another example of complementary goods:





The price of soccer shoes decreases dramatically, the sale of soccer balls increases. This is true because the falling price of shoes means that the amount demanded will increase. More people with soccer shoes means more people will buy soccer balls.





I hope this helps. The thing to remember is that you have way more knowledge of economics than you realize because econ affects almost every decision you make in your life. Now you just have to match vocab to concepts. Good luck with your econ course.