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How does change in price of complementary good affect the demand of the given good ? Explain with the help of an example |
| Answer» Solution :Complementary GOODS are those goods which are used TOGETHER to satisfy a particular want. Price of ONE complementary good has a negative relationship with demand of another complementary good, hence an increase in price of one complementary good leads to fall in demand of another complementary good. For example, if price of petrol INCREASES, the demand of cars will fall. | |