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04-05-2024
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7. Let's assume Ford leaves South Africa, and Nissan reduces the production of cars yearly. CONTINENTAL TYRE SOUTH AFRICA (PTY) LTD was the supplier of tires for Ford and Nissan. Which of the following statements is/are CORRECT regarding complement markets? The supply of motorcars cars in South Africa will decrease, and a left shift in the supply curve will show that. Due to a decrease in the supply of motorcars, the equilibrium price will increase, the equilibrium quantity will decrease, and the quantity demanded of motorcars will decrease. Due to a decrease in the supply of motorcars, the demand for tires will decrease, decreasing the equilibrium price and quantity, and the quantity supplied will decrease. A leftward shift will show a decrease in demand for tires.

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