Changes

Jump to navigation Jump to search
an increase in the price of one good causes a decrease in the demand for the related good.
Line 1: Line 1: −
'''Complementary goods''' are commodities that depend on each other such that an increase in the price of one good causes a decrease in the demand for the related good.  For example, an increase in the price of [[French toast]] could cause a decrease in the demand for [[maple syrup]], because those two goods are often consumed together.  An increase in the price of [[salad dressing]] could cause a decrease in demand for [[salad]].  Thus, complementary goods will always have a negative cross elascticity of demand (% change in demand for good A divided by % change in price of good B)
+
'''Complementary goods''' are commodities that depend on each other such that an increase in the [[price]] of one good causes a decrease in the [[demand]] for the related good.  For example, an increase in the price of [[French toast]] could cause a decrease in the demand for [[maple syrup]], because those two goods are often consumed together.  An increase in the price of [[salad dressing]] could cause a decrease in demand for [[salad]].  Thus, complementary goods will always have a negative cross elasticity of demand (% change in demand for good A divided by % change in price of good B)
    
Complementary goods are the opposite of [[substitute goods]].
 
Complementary goods are the opposite of [[substitute goods]].
    
[[Category:Economics]]
 
[[Category:Economics]]
Siteadmin, Check users, nsTeam1RO, nsTeam1RW, nsTeam1_talkRO, nsTeam1_talkRW, oversight, Administrators
30,650

edits

Navigation menu