Question

When the price of product A rises, the quantity of product B that is purchased decreases. Products A and B are:__________

Answer 1

Answer: Product A and B are complimentary Goods .

Explanation: Complimentary Goods are a part of 'Price of related goods' factor affecting demand , among the 4 factors - Price of good , Price of related goods (substitute & complimentary) , Income , Taste preferences

These are goods which are jointly demanded . Eg Inverter & Battery .

These goods price & demand have inverse relationship implying price rise of one good leads to fall in other good demand , price fall of one good leads to rise in other good demand .

This happens because price of one good rise leads to fall in its demand (price demand inverse relationship as per law of demand) , which subsequently reduces the demand for its complement good also as both are used jointly .

Similarly , price fall of good reduces its own as well as its complement good demand.

Eg Price rise of petrol can lead to a reduction in demand of cars .

Answer 2

They are Complimentary Goods.

Step-by-step explanation:

Complimentary goods are defined in economics as products that whose use is related to the use of an associated or paired good.

i.e.: Like Cars and Petroleum

When the price is increase in one product, then the quantity demand for that product decreases. This in tern affects the other related product and the quantity demand of that related product falls as well.