If an increase in the price of one good leads to a decrease in demand for another, the two goods are
A)complements
B)substitutes
C)inferior goods
D)marginal goods

Question

Quizplus · Accepted Answer

When an increase in the price of one good leads to a decrease in demand for another, the two goods are said to be complements. Complementary goods are those that are often used together, such as hot dogs and hot dog buns, or computers and computer software. As the price of one good (e.g., hot dogs) increases, people are less willing or able to buy as much of it, which means they'll also be less likely to buy the complementary good (e.g., hot dog buns). This is because the two goods are usually consumed together, and so the decrease in demand for one good will reduce the demand for the other as well.

If an Increase in the Price of One Good Leads