What is the outcome if two goods are complements?

When two goods are considered complements, it means that they are used together in consumption. A classic example of complementary goods is coffee and cream; when the price of coffee rises, people tend to buy less coffee, which in turn leads to a decrease in the demand for cream, since fewer consumers will want to use cream if they are consuming less coffee.

In this context, the correct understanding is that as the price of one good increases, the quantity demanded for that good falls, leading to a corresponding decrease in the demand for the complementary good. This relationship demonstrates the interdependence of their demand, reflecting how the increase in the price of one leads to a reduction in the consumption of both goods.

The reasoning behind the other choices does not align with the concept of complementary goods. For example, an increase in price leading to an increase in demand is typical of substitute goods, where consumers may look for alternatives instead. The assertion that the demand for both goods is completely unrelated contradicts the foundational economic principle that defines complementary goods. Similarly, stating that a decrease in the price of one good leads to a decrease in demand for the other is also inaccurate, as typically, a decrease would cause an increase in demand for its complement. Therefore, the central relationship of