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Are two goods complements if the cross-elasticity coefficient is negative?
Cross Elasticity Coefficient is defined as when the price of a particular commodity rises how is the demand of another commodity changing. If the goods are complements like say for example petrol and petrol driven cars, if there is a price hike in petrol then demand for petrol cars would fall. Hence a negative cross elasticity of coefficient. On the other hand the demand for deisel cars would rise (given the deisel prices are constant) because they serve as substitutes, and will have a positive cross elasticity.
Petrol is a complementary product for car.How can increase in income will affect the demand for petrol if you know that a car is a normal good?
i dont knowhgfdgfhjjk
Why are the prices of petrol and diesel going up?
demand of petrol are going up year by year and petrol is nonrenewable source of energy
What factors affecting the demand of automobiles?
Complementary goods are consumed with other goods and the prices for these goods can affect demand for automobiles. These factors can include petrol prices, tyre prices or vehicle registration costs. In general, if any of these increase, their demand will decrease, along with demand for automobiles.Supplimentary goods are consumed instead of other goods, in other words, they are alternatives to a certain good. In this case, they could include bicycles, motorcycles, footpaths and public transport. If any of these goods increase in price, then automobiles will become more in demand due to being a cheaper alternative, whereas if the price of the goods decrease, demand for automobiles will likely decrease.
What will happen to demand for a commodity if the price of its complementary falls?
Complement goods are those goods which uses collectively or side by side e.g petrol and cars. If the demand of one good changes then demand of other good move in the same direction. If the price of product complementary falls then the demand of complementary product increases according to the demand law which in turn increase the demand of product. Suppose the prices of petrol falls which will increase the demand of petrol which in turn in increase the demand of cars.
Are two goods complements if the cross-elasticity coefficient is negative?
Cross Elasticity Coefficient is defined as when the price of a particular commodity rises how is the demand of another commodity changing. If the goods are complements like say for example petrol and petrol driven cars, if there is a price hike in petrol then demand for petrol cars would fall. Hence a negative cross elasticity of coefficient. On the other hand the demand for deisel cars would rise (given the deisel prices are constant) because they serve as substitutes, and will have a positive cross elasticity.
Petrol is a complementary product for car.How can increase in income will affect the demand for petrol if you know that a car is a normal good?
i dont knowhgfdgfhjjk
Why the demand for vehicles is very high as the petrol rises?
The only demand that will become high when petrol prices rise is the demand for fuel-efficient cars.
Why are the prices of petrol and diesel going up?
demand of petrol are going up year by year and petrol is nonrenewable source of energy
What factors affecting the demand of automobiles?
Complementary goods are consumed with other goods and the prices for these goods can affect demand for automobiles. These factors can include petrol prices, tyre prices or vehicle registration costs. In general, if any of these increase, their demand will decrease, along with demand for automobiles.Supplimentary goods are consumed instead of other goods, in other words, they are alternatives to a certain good. In this case, they could include bicycles, motorcycles, footpaths and public transport. If any of these goods increase in price, then automobiles will become more in demand due to being a cheaper alternative, whereas if the price of the goods decrease, demand for automobiles will likely decrease.
What control the petrol price?
Supply, demand & competition.
Is petrol expensive?
Because the Dwarfes demand it so
What will happen to demand for a commodity if the price of its complementary falls?
Complement goods are those goods which uses collectively or side by side e.g petrol and cars. If the demand of one good changes then demand of other good move in the same direction. If the price of product complementary falls then the demand of complementary product increases according to the demand law which in turn increase the demand of product. Suppose the prices of petrol falls which will increase the demand of petrol which in turn in increase the demand of cars.
How can oil company solve the problem of the demand of diesel and petrol?
Produce more petrol than diesel. :P
How does cracking help the economy?
There is more demand for petrol rather than bitumen :)
How does combustion of petrol affect the air?
the air pollution
What effect an increase in the price of petrol is likely to have on equilibrium price?
an increase in the price of petrol will make the price of the car also increase.It will reduce the demand of the car and the demand and supply curve will shift to the left .The car and the petrol is compliment goods whereby it related to each other alike car cannot move without petrol and cannot play badmintion without a shuttle.
