Two products are complements if
A) A decrease in the price of one causes buyers to demand less of the other
B) An increase in the price of one causes buyers to demand more of the other
C) A decrease in the price of one causes buyers to demand more of the other
D) Individuals consume the goods together

Question

Quizplus · Accepted Answer

Complementary products are those which are consumed together. Therefore, a decrease in the price of one complementary product will cause an increase in demand for the other. For example, if the price of peanut butter decreases, the demand for jelly will increase as people are more likely to consume them together.

Two Products Are Complements If