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Question

The impact of a fall in the price of a complementary good on the given good. Explain.

Solution
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Complementary are those goods which are used together to satisfy a particular want, like car and petrol. A decrease in the price of complementary goods leads to a increase in the demand for given commodity and vice versa. For example if price of a complementary good (say petrol) decreases, then demand for given commodity (say car) will rise.

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