Answer to Question #110387 in Microeconomics for Sarah

Question

An increase in the price of good X results in fall in demand for good Y. This implies that the two goods are?

Answer 1

These products are complementary goods. For example, some flashlight needs specific batteries. With increasing prices for flashlights, the demand for them falls, which can lead to a drop in demand for batteries, regardless of whether the price changed for them or not.