Plastic and glue are complementary goods in the production of body panels for certain automobiles. if the price of plastic increases, with other things remaining the same, we would expect:

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03-11-2017
Business

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Plastic and glue are complementary goods in the production of body panels for certain automobiles. if the price of plastic increases, with other things remaining the same, we would expect:

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Erudite1 Erudite1 · Answer 1 · 2017-11-15T11:25:16+01:00

If the price of plastic increases, with other things remaining the same, we would expect A DECREASE IN THE DEMAND FOR GLUE.
Two goods A and B are said to be complementary if using more of A will leads to using more of B. For instance, printer and ink cartridge are complementary goods. If the price of printer is increased, the demand for printer will be decreased and the demand for ink cartridge will also be decreases, because, the two are always used together. The reverse is also true.