Asked by zaimel moses on Apr 24, 2024
Verified
When an increase in the price of one good lowers the demand for another good, the two goods are called complements.
Complements
Goods or services that are used together, where the use or consumption of one enhances the value or demand of the other.
- Identify the characteristics and effects of substitute and complement goods on market demand.
Verified Answer
IG
Isleydis Garcia7 days ago
Final Answer :
True
Explanation :
When the price of one good increases and causes the demand for another good to decrease, those goods are considered complements because they are often used together, indicating a direct relationship between their demands.
Learning Objectives
- Identify the characteristics and effects of substitute and complement goods on market demand.