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Yes. Ink and printers are complementary goods. A person can't buy whatever ink they want, they need the ink that goes with their printer. At the same time, i
by jlarocco 13y ago
Yes.
Ink and printers are complementary goods. A person can't buy whatever ink they want, they need the ink that goes with their printer. At the same time, if ink prices go up $5 per cartridge, few people will go out and buy an entirely new printer.
- crusso 13y agoInelasticity of demand from complementary goods comes into play when the complementary good is relatively very expensive or difficult to replace. Consumer printers cost about the same as an ink cartridge or two. Consumers aren't "stuck" paying for more expensive ink if manufacturers decide to start screwing them on the price. [edit: wanted to add this] Even with the ridiculously complementary goods of automobiles and gasoline, more expensive gas shifts consumer demand away from gas guzzlers.
- johnward 13y agoThis is why some people will actually buy a new printer when their ink runs out.
- jlarocco 13y agoAnd if this were about typical consumers, I might agree. But this is about the government, who most likely has a contract with a supplier, locking them in to their ink prices when they buy the printer. And, if nothing else, getting approval to buy a printer will take longer and require more paper work than getting approval to buy ink.