why does complementary goods have inelastic demand
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Answer:
Complementary goods have a negative cross- price elasticity: as the price of one good increases, the demand for the second good decreases.
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Explanation:
Complementary goods have a negative cross- price elasticity: as the price of one good increases, the demand for the second good decreases.
Substitute goods have a positive cross-price elasticity: as the price of one good increases, the demand for the other good increases.
Independent goods have a cross-price elasticity of zero: as the price of one good increases, the demand for the second good is unchanged.
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