Certain goods are related so that an increase in the price of one good decreases the demand for the other. These goods are:
A)complements.
B)substitutes.
C)luxury goods.
D)competing goods.

Question

Certain goods are related so that an increase in the price of one good decreases the demand for the other. These goods are:
A)​complements.
B)​substitutes.
C)​luxury goods.
D)​competing goods.

Quizplus · Accepted Answer

Complements are goods that are often consumed together, such as gasoline and cars, or peanut butter and jelly. An increase in the price of one complement decreases the demand for the other, as consumers will be less likely to purchase both if the price of one has gone up.

Certain Goods Are Related So That an Increase in the Price