Q: Define: 1) Inferior Good and 2) Compliments
A: Inferior Good: A good which a person demands
less as income increase.
As I increases Qx decreases.
The income elasticity is negative.
Compliments: Two goods are
compliments if an increase in the price of one
good causes less of the other good to be demanded.
As Py increases Qx decreases.
The cross price elasticity is negative.