If a new breakthrough in manufacturing technology reduces the cost of producing cricket bats by half, what would happen to the demand for cricket bats and demand for cricket balls?The answer is the demand for cricket bats unchanged, the demand for cricket balls increases. I know they are complement, i thought the demand should remain unchanged as well.Why?
The demand for cricket bats and cricket balls are indeed complements, meaning they are typically used together. When the cost of producing cricket bats decreases, it is likely that the price of cricket bats will also decrease. This price decrease makes cricket bats more affordable and attractive to consumers, which would lead to an increase in the demand for cricket bats.
However, this decrease in the cost of producing cricket bats does not directly impact the demand for cricket balls. The demand for cricket balls is influenced by other factors such as the popularity of the sport, the number of people playing cricket, and the frequency of games being played. Since the cost reduction in cricket bat production is unrelated to these factors, it would not have a direct effect on the demand for cricket balls.
Therefore, in this scenario, the demand for cricket bats would increase due to the reduced cost, while the demand for cricket balls would likely remain unchanged unless there are other factors at play that would influence the demand for cricket balls.
The demand for cricket bats would likely remain unchanged because the reduction in manufacturing costs does not directly influence consumer preferences or desires for a cricket bat. In other words, the lower cost of production does not necessarily lead to an increase in the demand for cricket bats.
On the other hand, the demand for cricket balls may increase as a result of the reduced cost of producing cricket bats. This is because cricket bats and cricket balls are complementary goods - they are typically used together in the sport of cricket. When the price of one complementary good decreases, it often leads to an increase in demand for the other complementary good. In this case, as the cost of cricket bats decreases, more people may be inclined to buy them, and thus the demand for cricket balls may increase.