Two goods are complements if a decrease in the price of one causes an increase in the demand for the other good.

Question

Quizplus · Accepted Answer

This statement correctly defines the concept of complementary goods. When the price of one good decreases, consumers may be more likely to purchase that good and also the complementary good that goes well with it. For example, if the price of hot dog buns decreases, the demand for hot dogs may increase as people are more willing to purchase both items together.

Two Goods Are Complements If a Decrease in the Price