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Questions
Define complementary goods.
Define complementary goods (complements).
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Solution
Complementary goods are those goods that are used jointly or consumed together, like cars and petrol or gas and gas stoves. In the case of complementary goods, an increase in the price of one good decreases the demand for the other goodits complementary good.
RELATED QUESTIONS
With help of an example explain the term complementary goods.
With suitable examples differentiate between complementary goods and substitute goods.
Explain clearly two factors which determine demand.
If a buyer buys less of a commodity when his income falls, how will his demand curve change? Illustrate your answer with a diagram.
Identify the factor that affects market demand from the options below:
A substitute good is a good:
What will be the effect on demand for tea, if the price of coffee falls?
What will be the effect on demand for cars, if petrol becomes expensive?
Give two examples of substitute goods.
Give two examples of complementary goods.
