Complements
Complements are goods that are consumed together or in conjunction. They have negative cross-price elasticity - when the price of one falls, demand for both increases.
Real World
When Sony cut the price of the PlayStation 5 in 2023, not only did console sales rise but demand for PS5 game titles from studios like Insomniac Games also increased sharply.
Exam Focus
State that cross-price elasticity is negative for complements — then explain the direction of the demand shift in the related market for full marks.
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