complementary goids,gave low elasticity of demand.how??
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Complementary goods are products which are used together
The strength of this correlation depends on how related the goods are. if the price of cars increases, demand for petrol may decrease. Complements can often have a one-sided effect because of their dependent nature. If tires become cheaper, you don't suddenly decide to buy a car. But on the other hand, if cars become cheaper, you will demand more tires. So here car exhibit low elasticity of demand
The strength of this correlation depends on how related the goods are. if the price of cars increases, demand for petrol may decrease. Complements can often have a one-sided effect because of their dependent nature. If tires become cheaper, you don't suddenly decide to buy a car. But on the other hand, if cars become cheaper, you will demand more tires. So here car exhibit low elasticity of demand
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Complementary goods are those goods which are demanded and hence used together.
In the case, of complementary goods the price of 1 decreases and demand of other increases and vice versa. for example let two complementary goods Be car and petrol price of petrol increases the demand of car decreases. hence, there exist negative relationship between price of one and the demand other ..
In the case, of complementary goods the price of 1 decreases and demand of other increases and vice versa. for example let two complementary goods Be car and petrol price of petrol increases the demand of car decreases. hence, there exist negative relationship between price of one and the demand other ..
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