1.

How will a decrease in the prive of the pen affect the demand of ink?

Answer»

Solution :Since these are COMPLEMENTARY goods, with DECREASE in price of pen, demand of ink will increase because consumer will demand more of pens due to FALL in price of pens. There will be rightward shift in demand curve of ink from DD - `D_(1)D_(1)`. There is rightward shift in demand curve of ink due to decrease in price of pens.


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