2 years ago

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

1 answer:

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.

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