Changes in Price Substitute goods An increase(decrease)in the price of good X leads to an increase ( decrease)in the consumption of good Y. Complementary goods An increase( decrease)in the price of good X leads to a decrease(increase)in the consumption of good Y 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 Changes in Price • Substitute Goods  An increase (decrease) in the price of good X leads to an increase (decrease) in the consumption of good Y. • Complementary Goods  An increase (decrease) in the price of good X leads to a decrease (increase) in the consumption of good Y