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Complementary goods

Complementary goods - for B(Q BC will also fall The sign of...

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Complementary goods: Consider two complementary, good A - a vehicle and B - gasoline. In this case, with a rise in the price of A the demand for A (Q A ) will fall and similarly, the demand
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Unformatted text preview: for B(Q BC ) will also fall. The sign of elasticity ratio will then be negative in sign. This can be illustrated as follows: P A &nbspQ A &nbspQ BC 5000 &nbsp100 40 6000 80 35...
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