Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

Question

Quizplus · Accepted Answer

When two goods are complements, an increase in the price of one leads to a decrease in the demand for the other. Since sugar and coffee are complements, an increase in the price of sugar will decrease the demand for coffee, potentially leading to a decrease in its price.

Coffee and Sugar Are Complements