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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» <html><body><p></p>Solution :Complementary <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> are those goods which are used <a href="https://interviewquestions.tuteehub.com/tag/together-3221943" style="font-weight:bold;" target="_blank" title="Click to know more about TOGETHER">TOGETHER</a> to satisfy a particular want. Price of <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a> 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 <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a>, the demand of cars will fall.</body></html>


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