Which statement describes complementary goods?

Which statement describes complementary goods?

• A. A rise in the price of one good leads to an increase in the demand for the other good.
• B. A rise in the price of one good leads to a decrease in the demand for the other good.
• C. They are produced by the same firm
• D. They are independent of each other

Answer: (B)

Complementary goods are items that are typically used together, so the demand for one is influenced by the price of the other. When the price of one good rises, people buy less of that good, and because these items are used together, they also buy less of its partner. This is the cross‑price effect that characterizes complements: the demand for the other good falls as the price of the first rises. For example, if printers become more expensive, fewer people buy printers, and the demand for ink cartridges drops accordingly. The other ideas don’t fit because substitutes would imply that a price rise in one good boosts demand for another, while being produced by the same firm or being independent does not describe the linked consumption pattern of complements.

Complementary goods are items that are typically used together, so the demand for one is influenced by the price of the other. When the price of one good rises, people buy less of that good, and because these items are used together, they also buy less of its partner. This is the cross‑price effect that characterizes complements: the demand for the other good falls as the price of the first rises. For example, if printers become more expensive, fewer people buy printers, and the demand for ink cartridges drops accordingly. The other ideas don’t fit because substitutes would imply that a price rise in one good boosts demand for another, while being produced by the same firm or being independent does not describe the linked consumption pattern of complements.