Two goods are complements if an increase in the price of one good leads to an increase in demand for the other.

Question

Quizplus · Accepted Answer

Two goods are complements if an increase in the price of one good leads to a decrease in demand for the other. This is because the goods are typically consumed together, so if one becomes more expensive, consumers may choose to use less of both goods or switch to a substitute.

Two Goods Are Complements If an Increase in the Price