X and Y are complementary goods. The price of Y falls. Explain the chain of effects of this change in the market of X.

X and Y are complementary goods. The price of Y falls. Explain the cha

1.	X and Y are complementary goods. The price of Y falls. Explain the chain of effects of this change in the market of X.
Answer» Solution :A fall in PRICE of Y lead to an increase in demand of good X. As a result, the demand curve for X will SHIFT RIGHTWARDS. The increase in demand leads to competition among buyers causing a PUSH in the market price. The increased price leads to an increase in the qunatity suppied and a fall in quantity demanded leading to a new equilibrium where both the price and quantity demanded of X are higher.