Which of the following products are likely to be complementary goods?
A) Coke and Pepsi
B) portable MP3 players and batteries
C) HD-DVDs and Blu-Ray DVDs
D) Domino's pizza and Papa John's pizza

Question

Quizplus · Accepted Answer

Portable MP3 players and batteries are complementary goods because MP3 players require batteries in order to function. A rise in demand for one product leads to an increase in demand for the other, as consumers will need more batteries to use their MP3 players.

A and D are not complementary goods as they are substitutes, meaning that an increase in demand for one product will lead to a decrease in demand for the other.

C is not a valid answer as both HD-DVDs and Blu-Ray DVDs are competing products, not complementary goods.

Which of the Following Products Are Likely to Be Complementary