MATCHING DEFINITION Two goods used in conjunction with one another. An increase in the price of one causes a decrease in consumption of the other, all other things constant.
Added by Kristina S.
Close
Step 1
Step 1: This is the definition of complementary goods, which are goods that are often consumed together and have a negative cross-elasticity of demand. Show more…
Show all steps
Your feedback will help us improve your experience
Shalini Tyagi and 69 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Two goods are complements if a decrease in the price of one good: This will lead to: Select one: a. reduces the quantity demanded of the other good b. increases the quantity demanded of the other good. c. increases the demand for the other good. d. reduces the demand for the other good.
Shalini T.
For a rational consumer who has to choose between two goods in the context of budget constraints, the price change of one of the goods, ceteris paribus (i.e the other things remain the same) will determine: a parallel shift of the budget line to the right a parallel shift of the budget line to the left a change in the slope of the budget line no change in the budget line
Azat N.
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the prices of resources used to produce X will Multiple Choice increase S, increase P, and increase Q. increase D, increase P, and increase Q. decrease S, decrease P, and decrease Q. decrease S, increase P, and decrease Q.
Andrew D.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD