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The nature of complements and substitutes, defined in Measures of response: elasticities, can be further understood with the help of Figure 6.10. The new equilibrium has been drawn so that the increase in the price of jazz results in more snowboarding—the quantity of S increases to from . These goods are substitutes in this picture, because snowboarding increases in response to an increase in the price of jazz. If the new equilibrium were at a point yielding a lower level of S than , we would conclude that they were complements.
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