Answer to Question #183161 in Microeconomics for Saman Khalil

Question

Pepsi and burger are complements because they are often enjoyed together. When the price of pepsi rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for burgers.

Answer 1

Complements goods are those goods which are used together. Like pen and ink, in the Complements goods there is negative relationship between the price of one good quantity demand of other goods and there is positive relationship between the price of one good and quantity supplied of other good.

In the case of Pepsi and burger, these are Complements goods so when the price of Pepsi rises then quantity Demanded of burger decreases and quantity supplied of burger increases by this demand of burger decreases and supply of burger increases as price of burger remains same beacuse in this only price of Pepsi increases.