Final answer:
If the price of coffee increases, the demand for cream, as a complementary good, decreases.
Step-by-step explanation:
Complementary goods are goods that are typically consumed together. In this case, coffee and cream are complementary goods because they are commonly used together. According to the law of demand, when the price of a good increases, the demand for its complementary good decreases.
So, if the price of coffee increases, the demand for cream will decrease. When coffee becomes more expensive, people may choose to reduce their consumption of coffee or switch to alternative beverages, resulting in a decrease in the demand for cream.
For example, if the price of coffee increases from $2 to $3, some consumers may decide to drink less coffee or switch to tea. As a result, they will also reduce their consumption of cream. This shows that when the price of coffee increases, the demand for cream, as a complementary good, decreases.