Find the best answers to your questions at Westonci.ca, where experts and enthusiasts provide accurate, reliable information. Explore our Q&A platform to find in-depth answers from a wide range of experts in different fields. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
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
Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.