Complementary and Substitute Goods

Question 1

What are complementary goods

Answer 1

two goods often consumed together

Question 2

What are substitute goods

Answer 2

goods which can replace one another

Question 3

If coca cola price decreases what happens to the demand for pepsi (substitute)

Answer 3

quantity demanded for pepsi decrease at same price level

shift inwards

Question 4

If price of ketchup decreases what happens to the demand for chips

Answer 4

quanitity demand for chips increases at same price level

shift outwards