Question

Describe two products or services that are "complements" - other than the ones that are described in the course. Share a photo illustrating those two products or services Be as creative as possible in your posts!

Answer 1

Complementary Good:- It is a good whose use is associated to the use of an associated good. For example, the demand for one good like printers generates demand for the other good like ink Cartidges. If the price of printer fall and people will buy more of them. They will usually buy more of the complementary good ink cartridges also, whether or not its price also falls.

Complementary Goods have a negative connection with each other. It means when product X increases in price demand for product Y actually falls. This is because less people buy product X due to the high price. In economics this is known as negative cross elasticity of demand.