An increase in the price of a good will cause a decrease in the demand for a complementary good.

Question

Quizplus · Accepted Answer

This is because an increase in the price of one good will make the complementary good relatively more expensive, leading to a decrease in demand for the complementary good. For example, if the price of peanut butter increases, the demand for jelly (a complementary good) may decrease because fewer people can afford to buy both.

An Increase in the Price of a Good Will Cause