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use the demand curve to represent the following cases
4) The products Aand B are complements. Describe the Demand Curve of products A and B in the following cases: a) The
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Answer #1

Ans 4

The complementary goods are those goods which are used together.
There is negative relationship between the price of one good and the demand of the Other good.
Example, a consumer uses two goods: good 1 and good 2 which are the complementary goods.
As we know that the consumer uses these two goods together so, when the price of any 1 good increases, its quantity demand decreases and the demand for other good also decreases as it is used with good-1.

(a) Decrease in quantity demanded for good-B Price o o Quantity

Price Decrease in demand for good - A Quantity

(b)

Increase in quantity demanded for good-B Price Q Q Quantity

Price Increase in demand for good - A Quantity

Ans 5 )

In case of the substitute goods there is positive relationship between the price of one good and demand for the other good which we can see in the following diagrams.

(a)

Decrease in quantity demanded for good - A Price o o Quantity

Price Increase in demand for good-B Quantity

(b)

Increase in quantity demanded for good -A. Price Price o o Q Q QuantityPrice Decrease in demand for good-B Quantity

(C)

Decrease in quantity demanded for good-B Price o o Quantity

Price Increase in demand for good - A Quantity

(D)

Increase in quantity demanded for good-B Price Q Q Quantity

Price Decrease in demand for good - A Quantity

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