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Home > Business & Finance > If the price of a complimentary good rises, does demand fall as the result of the substitution effect?

If the price of a complimentary good rises, does demand fall as the result of the substitution effect?

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drchris | 14:19 Fri 15th Oct 2010 | Business & Finance
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If the price of a complimentary good rises, does demand fall as the result of the substitution effect?
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Avatar Image bednobs
doesn't complimentary mean free? How can the price rise?
14:49 Fri 15th Oct 2010
Avatar Image jp_2031
demand falls for the initial good if a complimentary good price raises; not because of the substitution effect though; its just the general law of supply and demand. If, for example, butter went sky high in price, no one would want to buy bread because they need butter to go with their bread.
18:37 Fri 15th Oct 2010
Avatar Image factor-fiction
I assume you mean COMPLEMENTARY. (Complimentary means free of charge or giving a compliment)
18:59 Fri 15th Oct 2010
Avatar Image bushbaby_de
can't you do your own economics homework?
16:07 Fri 22nd Oct 2010

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