ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 4, Problem 1.2P
To determine
Categorize the goods as substitute, complementary and unrelated goods.
Concept Introduction:
Substitute goods are those goods which can be used in place of each other. Increase in the price of one good implies the increase in the demand of other good and vice-versa.
Complement goods are those which can only be used together. We can’t use one good at a time. Increase in the price of one good implies the decrease in the demand of other good and vice-versa.
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