Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

Two goods are considered to be related goods by many buyers: if the price of one increases, buyers buy more of the other. This indicates
that the two goods are complements.
True
False

Sagot :

GinnyAnswer

Final answer:

Complementary and substitute goods have opposite effects on demand based on price changes.


Explanation:

Complementary goods refer to goods that are typically consumed together, and an increase in the price of one leads to a decrease in the demand for the other. For example, if the price of DVD players increases, the demand for DVDs might decrease since they are complementary products.

Substitute goods are goods that can be used in place of each other, and if the price of one increases, the demand for the other increases. An example is tea and coffee, where if the price of tea rises, consumers may switch to buying more coffee.

In summary, when a rise in the price of one good leads to higher demand for another, they are substitutes, while when a price increase for one good reduces demand for another, they are complements.


Learn more about Complementary and Substitute Goods here:

https://brainly.com/question/28145273


We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.