What do you mean by complements? Give examples of two goods which are complements of each other.

The goods that are consumed together are called complementary goods like pen and refill, car and petrol etc. In case of complementary goods the rise in price of one commodity affects the demand of another.

Like if the price of petrol will increase the demand for cars will decrease Therefore the demand for complementary goods move in opposite direction to the price so they are inversely related.




At price P, the quantity demanded of car is Q, when the price of petrol decreases the quantity demanded of car is increased Q2. When the price of petrol increases the quantity demanded of car is decreased to Q1.



20