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Business
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| Number of pages / Number of words: |
5 / 1302 |
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Their price significantly determines the demand for a product. (Case & Fair, 2004) According to Figure 1.2, increase in the price of complementary goods (Vanilla Coke) results in less demand for the product itself (Hamburgers). When the price of complements of hamburgers, which is the Vanilla Coke, increased, the demand for both Vanilla Coke and hamburger will decrease, ceteris paribus, "as both of these goods normally purchased along or in conjunction with each other"...
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When the price of complements of hamburgers, which is the Vanilla Coke, increased, the demand for both Vanilla Coke and hamburger will decrease, ceteris paribus, "as both of these goods normally purchased along or in conjunction with each other". (D. Rohlf, Jr, 1999) The increase in price of complementary goods inversely proportional to consumer surplus for customers, thus, there will be a shift of the demand curve of hamburgers to the left...
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