Suppose you like to make, from scratch, pies filed with banana cream and vanila pudding. You notice thai the ce of bananas has increased. As a resul, your demand foe vanilla padding would:. a) decrease. b) increase. c) be unaffected. d) There is insufficient information given to answer the question.

A. Decrease

Explanation:

In this case, Banana cream and Vanilla pudding are complementary goods which means that they are products used together. Complementary goods are goods with negative cross elasticity of demand. This means than an increase in the price of one good will lead to a decrease in the demand for the other good and a decrease in price for one good will lead to an increase in demand for the other good.

Here, the prices of bananas increased, as a result the demand for vanilla pudding decreases because they are goods with negative cross elasticity of demand.