Two goods are complementary if:
A) the income elasticity of demand is negative.
B) each performs the same basic task.
C) the cross elasticity of demand is positive.
D) they are used together.

Question

Quizplus · Accepted Answer

Complementary goods are goods that are used together, meaning that the consumption of one good is often dependent on the consumption of the other. For example, computers and software are complementary goods as people need both to use the computer effectively. Therefore, option D is the correct answer. The income elasticity of demand and cross elasticity of demand are not relevant for determining if goods are complementary.

Two Goods Are Complementary If