1 Is Complementary To 2

What Are Some Examples of Complementary Goods?

Complementary goods are materials or products whose use is continued with the use of a related or paired commodity in a manner that demand for ane generates need for the other. Examples of such appurtenances include: DVD player and DVD disks, mobile phones and recharge cards, cars and petrol, printers and ink cartridges, boots and laces, calculator hardware and computer software, and tennis assurance and tennis rackets.

A complementary good has a negative cross elasticity. If the cost of 1 proficient falls and so that people purchase more of it, then more of the complementary good will be purchased, whether or not the price falls. At the same time, a rise in the price of one expert reduces its demand; the need for the paired good will reduce besides. When somebody purchases a computer, they will automatically need software such as Microsoft role, wireless drivers and specialized accounting programs.

The purchase of a DVD player has the complementary good existence DVDs. This is changing, though, with the changing technology, where DVD players are being used to stream movies and television shows using such services as Netflix, which may be considered the new complement.

Another example of complementary goods is a mobile telephone and recharge cards. When prices of mobile phones increment so that few people can beget the devices, demand for recharge cards will likewise fall. The opposite of a complementary expert is a substitute good. This implies that demand for a good increases when the toll of another proficient increment, for example coffee and tea.

1 Is Complementary To 2,

Source: https://www.reference.com/world-view/examples-complementary-goods-f2f98b2b1fdd7867?utm_content=params%3Ao%3D740005%26ad%3DdirN%26qo%3DserpIndex&ueid=ccd81caf-4013-4e14-9b2e-f876e1a42199

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