When two goods are related such that an increase in the price of one good decreases the quantity demanded of the other good,these goods are definitely
A) normal goods.
B) luxury goods.
C) complements.
D) substitutes.
E) inferior goods.

Question

Quizplus · Accepted Answer

If an increase in the price of one good results in a decrease in the quantity demanded of another good, this indicates that the two goods are complements. Complements are goods that are used together, such as peanut butter and jelly or coffee and creamer. An increase in the price of one good (e.g. peanut butter or coffee) reduces the quantity demanded of the complementary good (jelly or creamer).

When Two Goods Are Related Such That an Increase in the Price