There is an increase in the demand for cream when the price of coffee falls. Other things constant, we can conclude that coffee and cream are
A)substitute goods.
B)inferior goods.
C)independent goods.
D)complementary goods.

Question

Quizplus · Accepted Answer

Complementary goods are two goods that are used together, so a decrease in the price of one will increase the demand for the other. In this case, coffee and cream are typically used together, so they are complementary goods.

There Is an Increase in the Demand for Cream When