What is a complementary product?

Supplementary product - more often referred to as additional good in economics - is an item that often has interconnected use with other good. Economists usually use classic examples to define an additional product, such as hot dog and hot dog, car vehicles and rubber tires or hamburgers and hamburger buns. Demand for one of these goods often controls demand for a second due to their mutual use. The purpose of defining goods as a supplement can help economists understand the decisions that made homo economic, economic man. Companies can also use this information for general business purposes. The price is the only largest factor, because sellers and buyers try to reach a point where they can maximize the movement of goods. The Seller Seller must ensure that there are enough offers for each GOO. The price for each good tends to have separate equilibrium points as defined by supply and demand. SpolIt must ensure that the balance for each goods is close to each other to maximize the sale of each item.

If the price increase by one additional product increases to high, consumers tend to look for a replacement good. This means that consumers will find alternative good that offers a similar value to the preferred good. The second item that sells well with the supplementary product will also start to sell. Companies must therefore find a way to interpret additional goods that are not sold due to the increase in the price of the second product. If you do not do so, it will result in lost sales and outdated inventory in the future in the future.

Companies may not be able to sell all additional products at your own will. For example, Hot Dog often focuses on sales of hot dogs because it is the goal and purpose of business. SALE HOT DOG BUCHTY therefore falls into another SPOlečnosti, most likely a bakery. When the price of hot dogs increases exponentially - throwing balance with supply and demand from Kilter - then the sale of hot dog buns is most likely to drop. In this case, two companies will suffer from weak sales and must find ways to survive an economic decline.

In some cases, a complementary product can be better sold during an economic decline. For example, a reduction in purchasing power can result in that consumers cannot buy a fillet Mignon. Hot Dogy will then become a substitute thanks to the lower prices of these items compared to Filet Mignon. As the sale of hot dogs increases, the sale of additional products such as Hot Dog Buchty.