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How can the demand for one good be affected by the increased demand for another one?
Wiki User
∙ 13y ago
Example 1: There are two main ways this can happen. It depends on whether the two goods are complimentary goods or substitute goods.
For example, Hot Dogs and Ketchup are complimentary goods (because they go together) so when the demand for hot dogs goes up, so does the demand for ketchup
Example 2. Cars and trucks are substitute goods because, even though they are in the same market, people tend to only buy one or the other. So if the demand for trucks went up, this would mean the demand for cars is going down.
If you don't like this I can give the answer to this Multiple Choice Questions like it has on the Shifts of the Demand Curve Worksheet.
1. When the goods are bought together, increased demand for one will decrease for the other
2. If the goods are used together, increased demand for one will increase demand for the other (This is the correct answer)
3. If the goods are substitutes for each other, increased demand for one will increase the demand for the other.
4. A drop in price for the good will increase demand for the good and it's substitute.
Wiki User
∙ 13y ago
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What is cross price elasticity demand?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
When the decrease in the price of one good causes the demand for another good to decrease the goods are?
substitue
Is the primary loan holder's credit affected when a cosigner declares bankruptcy?
CR??? NO. The loan?? Possibility. that's why the lender required you to have a co-signor. Your CR is not very good. They could require you to get another co-signor or demand payoff.
What is an example of change in demand?
Well to answer the question lets go back a few steps: In Economics: Law of Demand ( according to investopedia) - A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa. Here's a graph of what a typical demand curve looks like: click the NeTMBA link that follows this answer So now that we know what the Law of Demand is now lets see what effects it. The Law of Demand is affected by: * Customer Preference * Income * Number of Potential buyers * Expectations of Price Change * Price of Related goods- Complements and Substitutes Complements- a good often consumed together with another good in economics. So if the Price of complements goes up then the demand for the good goes down thus shifting the graph to the left. Substitutes- A good where in can be used in place of another. There are other factors that effect it but the list above are some of the most common ones. I hope this helps with understanding the law of demand. To find an example of this click on the NeTMBA link that follows to see it.
Definition for ''law of demand''?
In economics, the law of demand states:- As the price of a good or service increases, the demand for that good or service will decrease.- As the price of a good or service decreases, the demand for that good or service will increases.
How can the demand for one good be affected by increase demand for another one?
if goods are used together, increased demandfor one will increase demand for the other
How can the demand for one good be affected by increased demand for one another?
They compete for the consumers' dollars. If I spend on a car I have no $ for clothing. They compete for capacity, If I eat cake I have no capacity to use pie. They compete for materials. If I use corn to fuel cars there is less corn to eat.
Demand for one good or service that is determined by demand for another good or service is .?
derived demand
Demand for one good or service that is determined by demand for another good or service is?
derived demand
When a price of a good increased by 2 percent the quantity demanded decreased by 10 percent What is the price elasticity of demand?
Price elasticity of demand= percentage change in demand/percentage cgange in price 2 = % chnge in demand/10 % change in demand= 2*10 % change in demand= 20%
Cross elasticity of demand?
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.
How price of related goods affect demand?
Price of related goods fall into two categories: substitutes and complements. Complements are when a price decrease in one good increases the demand of another good. Substitutes are when a price decrease in one good decreases the demand for another good.
What is cross price elasticity demand?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
How would marginal utility and market demand be affected by rise in the price of a complementary good?
Both would decrease.
Is the demand for Budweiser price elastic?
The demand for beer is elastic.Beer is not a necessity good and therefore demand is highly affected by price. A good demonstration of this is the heavy summer price competition between manufacturers and the popularity of discount brands.It's regulated by state taxes.Beer is elastic because it is not a necessity for survival and because there are many substitutes for beer (ie red wine, champagne), demand is highly affected by price changes.
How does scarcity relate to this good or service?
Scarcity of goods and sevices will drive the related prices up and result in increased demand.
When the decrease in the price of one good causes the demand for another good to decrease the goods are?
substitue
