An increase in the price of ice cream causes the demand for sprinkles to decrease. In this case, ice cream and sprinkles are _____ goods.

Question

Quizplus · Accepted Answer

Complementary goods are items that are generally purchased and used together. Ice cream and sprinkles are often purchased together, making them complementary goods. When the price of ice cream increases, consumers may choose to purchase less ice cream which in turn decreases the demand for sprinkles. This demonstrates the complementary relationship between ice cream and sprinkles.

An Increase in the Price of Ice Cream Causes the Demand