When two goods are complementary in nature, the fall in the price of one will lead to an increase in the demand of the other.
What are Complementary Goods?
Two goods are complimentary if a consumer is most likely to purchase and use both items at the same time.
Some examples would are:
- Pencils and Notebooks
- Cars and Petrol
- Mobile Phones and Call Service Subscriptions etc.
Recall the law of demand. All things being equal, a decrease in price will lead to an increase in demand. So if the price of one has decreased, the demand for both will increase.
See the link below to learn more about Complementary Goods:
https://brainly.com/question/1354329
