economics interactive diagrams cross elasticity of demand Complementary Goods

Complementary Goods Cross-Price Demand

Printers (Good A)
Quantity Demanded (Q_A) Price (P_A) 100 100 D_A
Ink Cartridges (Good B)
Quantity Demanded (Q_B) Price (P_B) 100 100 D_B
Price of Good A 100 Printers Price
Demand for Good B 100 Ink Quantity
Cross-Price Relationship Complements Inverse Effect
Price: 100
Price of Good A 100 Printers Price
Demand for Good B 100 Ink Quantity
Cross-Price Relationship Complements Inverse Effect

Cross-Price Elasticity Analysis

1. Effect on Good A (Law of Demand) P_A = 100 → Q_A = 100
2. Effect on Complementary Good B Demand D_B shifts to Q_B = 100
3. Cross-Price Elasticity of Demand (XED) XED = %ΔQ_B / %ΔP_A < 0 (Negative)
4. Economic Principle As P_A increases, joint consumption causes demand for Good B to fall.