Substitutes and complementary goods PDF

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Summary

assignment of business class in Toulouse Business School....

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Substitutes and complementary goods Substitute goods: a good’s demand is increased when the price of another good is increased. In other words, there are commodities that are similar enough that an increase in the price of one good (e.g. chewing gum) causes consumers to buy similar, less expensive goods (e.g. candy bar). Examples: turkey and chicken broccoli and spinach blueberries and raspberries margarine and butter petroleum and natural gas

Consumer More income they start going to the movies more

consumer (demand)

quantity demanded (my price) or demand (something else?)

price of cinema ticket supply increase in demand

$15 equilibrium $10

Increase in demand

Demand 200 Quantity of cinema tickets

300...