Difference between revisions of "Complementary goods"
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| − | Complementary goods are commodities that depend on each other such that in 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. | + | Complementary goods are commodities that depend on each other such that in 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]]. |
Complementary goods are the opposite of [[substitute goods]]. | Complementary goods are the opposite of [[substitute goods]]. | ||
Revision as of 11:25, February 23, 2007
Complementary goods are commodities that depend on each other such that in 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.
Complementary goods are the opposite of substitute goods.
