if both goods are complimentary , when price of X good rises then what happen to the demand of Y good ? show with the help of diagram .
Hey Hansraj,
Answer provided by Sandy is correct. The diagrammatic explanation of the above question is provided below:
Answer provided by Sandy is correct. The diagrammatic explanation of the above question is provided below:
Complementary goods refer to those goods that are consumed together. The joint consumption of these goods satisfies wants of the consumer. For example: ink and ink pens. In case of complementary goods, if the price of one good increases then a consumer reduces his demand for the complementary good as well, i.e. a rise in the price of one good results in a fall in demand of the other good. In this case, the demand curve shifts parallely inwards to the left.