Complementary Goods, Shortages, and Surpluses

Okay, So today I'll be covering complementary goods shortages and

surpluses, um, in the market.

So, like it says here, a complimentary good is a

good that is used together with the good, another good

or service.

That's like the principal good.

Um, and typically, a complimentary grid is not, doesn't have

very many don't have very much value by itself, but

it's good with something else.

So a good example of this is milk and cookies.

If the if the original good, the price for cookies

decreases, people are gonna want more milk because they're gonna

be buying more cookies.

So milk in this case would be a complimentary.

Good, because it complements the cookies.

So as that showed in that meme, when the price

of the original good goes down, demand of a compliment

goes up.

So when people buy more, cookies are going to buy

more milk.

Um, the opposite is also true, for example, with peanut

butter and jelly.

If peanut butter prices go up less people buy jelly

because they're buying less peanut butter.

And this is the fundamental example is something my dad

calls the post Christmas when you get something for Christmas.

But you buy something to go with it, that's a

complimentary good, for example, airpods in your pod cases.

And it's kind of like just spending more money where

it doesn't need to be spent sometimes.

But it's it's kind of comical.

We kind of do as humans.

Um, now, shortages is when demand is greater than the

supply of a good or service an example.

Here's a little supply curve supply and demand curves.

But an example of that is airplane flights.

For example, in an airplane flight, if it's at a

low price for an airplane flight, a lot of people

going to want it.

But the price is low, and so the purse.

The airlines are not going to give it away for

very many of those.

And so there's a shortage because people are wanting more

than it's being provided and the surpluses when the quantity

of the supply of good exceeds the demand.

For example, a good, funny examples Over the summer I

worked at Lowe's and we ordered in, like, 2000 of

these containers, and that was a surplus because we had

way more than demand.

So what we did is we brought the price down,

you could have even been boiled at equilibrium.

That way people were going to buy it, and over

time it found the equilibrium.

People were willing to pay a normal price again because

there was a normal supply that meant to the demand.

So that's a good example there.

So that's just some simple examples of complementary goods shortages

and surpluses.

Thanks for watching.

Complementary Goods, Shortages, and Surpluses

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