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Questions
Define complementary goods.
Define complementary goods (complements).
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Solution
Complementary goods are those goods that are used jointly or consumed together, like cars and petrol or gas and gas stoves. In the case of complementary goods, an increase in the price of one good decreases the demand for the other goodits complementary good.
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RELATED QUESTIONS
With suitable examples differentiate between complementary goods and substitute goods.
Explain clearly two factors which determine demand.
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The wide gap between the rich and poor with reference to income highlights ______ determinant of the market demand.
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Define substitute goods.
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