Final answer:
Complementary products and services are those that are used together where one increases the use or value of the other, like printers and ink cartridges. An example of a similar concept is bundling, where companies sell a combination of products or services at a discounted price, like cable bundles that include TV, internet, and phone services.
Step-by-step explanation:
Complementary products and services are those that tend to be used together, such that the use of one product increases the consumption of another. This concept, closely linked to ceteris paribus, or 'other things being equal', describes the scenario where demand for one item has a direct effect on the demand for another.
A classic example of complementary goods is printers and ink cartridges; as you use a printer, you will need more ink cartridges, and these two products complement each other. Similarly, smartphones and app subscriptions are complements, as owning a smartphone often leads to the purchase of services that enhance the functionality and enjoyment of the device.
Another concept akin to complements is bundle, which refers to when companies group multiple products or services for sale as a single combined unit. This often provides a price incentive to consumers over purchasing each item separately.
Cable companies frequently bundle services like television, internet, and phone services, offering them at a special price, which could be more attractive compared to buying each separately.