Question
Consider a market with two differentiated goods. Demand for good 1 is given by D 1 = 100 - 3 p 1 - 2 p
Consider a market with two differentiated goods. Demand for good 1 is given by
D1= 100 - 3 p1- 2 p2
where p1and p2are the prices for good 1 and 2, respectively.
Which of the following statements is correct?
Product 1 is a substitute to product 2.
Product 1 is a complement to product 2.
The products are independent.
More information is needed to determine the demand relationship between product 1 and 2.
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Forecasting for Economics and Business
Authors: Gloria Gonzalez Rivera
1st edition
131474936, 978-1315510415, 1315510413, 978-0131474932
