With the help of suitable example explain the effect of a rise in pric

1.	With the help of suitable example explain the effect of a rise in price on the demand for complementary goods.
Answer» Complementary goods are those goods which are used jointly and consumed together like tennis ball and a racket, petrol and car. The relationship between the price of a product and the quantity demanded of another is inverse. For example if the price of cars were to rise, less people would choose to buy and use cars, switching perhaps to public transport trains. It follows that under these circumstances the demand for the complementary good petrol would also decrease.

With the help of suitable example explain the effect of a rise in price on the demand for complementary goods.

Answer»

Complementary goods are those goods which are used jointly and consumed together like tennis ball and a racket, petrol and car. The relationship between the price of a product and the quantity demanded of another is inverse.

For example if the price of cars were to rise, less people would choose to buy and use cars, switching perhaps to public transport trains. It follows that under these circumstances the demand for the complementary good petrol would also decrease.

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With the help of suitable example explain the effect of a rise in price on the demand for complementary goods.

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