Final answer:
An increase in price of one product causing no change in demand for another indicates they are independent goods, without a complementary or substitute relationship. Another 10% price decrease may not cause a strict 8% increase in demand due to economic complexities.
Step-by-step explanation:
If an increase in the price of one product brings about no change in the demand for another product, this indicates that the products in question are neither complements nor substitutes. Products that are complements have a positive correlation in demand, meaning if the price of one goes down, the demand for the other goes up, like bread and peanut butter. Conversely, substitute products have an inverse relationship, where a decrease in the price of one leads to a decrease in demand for the other, like plane tickets and train tickets. The absence of any change in demand suggests that the two products are independent goods; changes in the price of one do not affect the demand for the other.
In the context of price elasticity of demand, if a 10% decrease in the price of a product leads to an 8% increase in quantity demanded of that product, it implies a certain level of elasticity. However, whether another 10% decrease will result in an additional 8% increase in quantity demanded is not certain. The relationship between price changes and demand can differ due to a variety of factors, including consumer income, preferences, and the existence of close substitutes, according to the ceteris paribus assumption (all other factors being constant).