If two goods are complementary,
A) a decrease in the price of one good will lead to a decrease in the demand for the other
B) the cross elasticity of demand is zero
C) an increase in the price of one good will lead to an increase in the demand for the other
D) the cross elasticity of demand is positive
E) a decrease in the price of one good will lead to an increase in the demand for the other

Question

Quizplus · Accepted Answer

When two goods are complementary, a decrease in the price of one good typically leads to an increase in the demand for the other good because they are used together.

If Two Goods Are Complementary