Managers at a local home improvement store see that new home sales in their area have increased. They order more refrigerators for their store. They likely do this because they assume that:multiple choicenew homes and refrigerators are complements.new homes and refrigerators are substitutes.refrigerators are inferior goods.refrigerators are normal goods.
Question
Managers at a local home improvement store see that new home sales in their area have increased. They order more refrigerators for their store. They likely do this because they assume that:multiple choicenew homes and refrigerators are complements.new homes and refrigerators are substitutes.refrigerators are inferior goods.refrigerators are normal goods.
Solution
The managers at the home improvement store are likely ordering more refrigerators because they assume that new homes and refrigerators are complements. This is because when new homes are sold, the buyers often need to purchase new appliances, like refrigerators, to fill them. Therefore, an increase in new home sales would likely lead to an increase in refrigerator sales, making them complementary goods.
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