Question:

Econ HELP! How do complements affect each other in the market, in terms of supply and demand?

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Soda & pizza are complements. When the price of soda rises, what happens to:

-supply

-demand

-quantity supplied

-quantity demanded

(I need help distinguishing the difference between quantity supplied & supply, and quantity demanded & demand).

Also, what happens to the price in the market for pizza?

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1 ANSWERS


  1. Complements assumes you have a target audience that consumes both, soda and pizza.  If one makes that assumption you might miss out on the target audience that drinks, tea, milk, or beer.  I see no correlation with complement in this scenario with supply, demand, and quantity.

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