Practicing Success
The price of petrol falls from 100 Rs to 80 Rs resulting in increase in demand of vehicles from 10000 to 20000. |
there will be no change in demand there will be increase in demand there will be decrease in demand there will be movement in demand curve. |
there will be decrease in demand |
Petrol and vehicles are complementary goods. Complementary goods are those goods who adds to the value of the other commodity. So, a car is incomplete without petrol in it. Thus, we can say that they are complementary goods. Few more examples include: pen and ink, bat and ball etc. When price of one commodity increases, the demand for the complimentary good decreases and vice-versa |