Explain the 'price effect' for normal 'substitutes' and 'complementary' goods.

Mathematics

1 answer:

Rashid [163]2 years ago

8 0

Answer:

When the price of a good that complements a good decrease, then the quantity demanded of one increases and the demand for the other increases. When the price of a substitute good decreases, the quantity demanded that good increases, but the demand for the good that it is being substituted for decreases.

You might be interested in

Estimate graphically the local maximum and local minimum of f(x) = 4x2 + 3x + 2

jarptica [38.1K]

Seeing the graph from desmos.com, we know there is only one place where the graph will go up then down, or down then up given that the maximum exponent of x is it squared. That place, as seen, is -0.375 for the minimum as it goes down then up. There's no maximum in sight :(