Complementary goods Pretzels (Y) When the price of good X falls, the consumption of complementary good y rises B A Beer(X) Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Complementary Goods When the price of good X falls, the consumption of complementary good Y rises. Pretzels (Y) Beer (X) II I 0 Y2 Y1 X1 X2 A B