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Which of these statements is TRUE of complementary products?

A) An increase in demand for one will cause a decreased demand for the other.
B) An increase in the price of one will cause a decrease in the price of the other.
C) An increased supply of one product will result in a decreased supply of the other.
D) An increase in the demand for one will usually result in an increased demand for the other.

1 Answer

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Answer:

D) An increase in the demand for one will usually result in an increased demand for the other.

Step-by-step explanation:

Complementary goods are products used together. They are sold separately but add value to one another. Complementary goods will usually be a set of two or more goods that gives the consumer a higher utility when used together. Examples include Petrol and car, Tennis balls and tennis rackets, and DVD player and DVD disks to play in it.

Complementary goods experience joint demand. Should the demand for one complimentary goods increase, demand for the other product or service increases automatically.

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