Assessing the Effect of Py Price Changes on the Consumption of GoodX as a Complement - Edubirdie

University:
Elon University
Course:
ECO 1000 | Economics
Academic year:

2024
Views:

82

Pages:

1
Author:

Masadepan C.

Assessing the Effect of Py Price Changes on the Consumption of Good X as a Complement Px 14 10 Py 8 5 M 80 80 x 2,4 3,5 y 5,8 9 MUx 19,4 29 MUy 11,2 14,5 Umax 89,8 157,5 M/Px = 5.7 M/P'x = 8 M/Py = 10 M/P'y = 16 y 16 10 9 5,8 x 2, 43, 55, 78 Explanation: Analyze from the graph that when Px goes down, good Y will increase. This shows the relationship of goods X and Y is complementary goods. Where complementary goods are goods that function to complement each other, for example, pens (x) and ink (y), when the price of item X drops, the demand for item Y will increase.

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