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Question
State the impact of the following changes on the demand curve of a commodity:
Increase in the price of a complementary commodity
Short/Brief Note
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Solution
If the price of a complementary good rises, demand for the good falls. For example, if the price of an ink pen rises, the demand for ink will fall because ink and ink pens are complementary items.
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Chapter 2: Elementary Theory of Demand - QUESTIONS [Page 58]
