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Complements are goods or services that are used in conjunction with a certain product. For example shampoo and conditioner are complements. When the demand for a complement increases it can shift the market demand curve for the original product. This is due to the fact that when the price of the complement goes up the demand for the original product may also increase due to the need to purchase the complement. Similarly when the price of the complement decreases the demand for the original product may decrease as well.
There are several ways in which complements can impact the market demand curve:
- If the price of a complement increases the demand for the original product may also increase.
- If the price of a complement decreases the demand for the original product may decrease.
- When the quantity of a complement increases the demand for the original product may also increase.
- When the quantity of a complement decreases the demand for the original product may decrease.
In conclusion complements can have a significant impact on the market demand curve for the original product. The price and quantity of the complement can both affect the demand for the original product either increasing or decreasing it. Therefore it is important to take these factors into account when analyzing the market demand curve.
Gertrude Carroll
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Market demand curve?
the market demand curve is the curve related to the demand of the commodity demanded by the group of people to the at different price.
Which market structure is the demand curve of the market represented by the demand curve of the firm?
oligopoly
Is individual demand curve and market demand curve same for identical consumers?
NO
How does a market demand curve differ from a demand curve How are they similar?
downward sloping
What is the shape of a market demand curve?
Usually market demand curves are downward sloping.
Market demand curve?
the market demand curve is the curve related to the demand of the commodity demanded by the group of people to the at different price.
Which market structure is the demand curve of the market represented by the demand curve of the firm?
oligopoly
Is individual demand curve and market demand curve same for identical consumers?
NO
How does a market demand curve differ from a demand curve How are they similar?
downward sloping
What is the shape of the market demand curve?
Usually market demand curves are downward sloping.
What is the shape of a market demand curve?
Usually market demand curves are downward sloping.
The demand curve any monopolist uses in making output decisions is?
the same as the market demand curve.
What are the limits of demand curve?
Demand curve is only Accurate for one very specific set of market condition.
When a product is in demand what happens to the demand curve?
the market demand for the product. undefined. more inelastic than the market demand for the product. more elastic than the market demand for the product
What does the market demand curve show?
It shows the demand for the product in relation to the price
What are the forces that cause the demand curve to change?
Supply is the main force that affects the demand curve to change in the economy or in a certain market.
The horizontal sum of all individual demand curves is known as?
The MArket Demand Curve
