What is if two goods are complements?

Complementary goods are products that are used together or in conjunction with each other. The demand for one good is influenced by the price and availability of the other. In other words, when the price of one complementary good rises, the demand for both goods might decrease because consumers may find it less desirable or cost-effective to use both products together.

For example, peanut butter and jelly are complementary goods because they are often used together to make a sandwich. If the price of peanut butter increases, consumers might buy less peanut butter and thus also less jelly because they are less likely to make sandwiches without peanut butter.

Overall, the demand for complementary goods is interconnected, and changes in the price or availability of one good can have a direct impact on the demand for the other. This relationship between complementary goods can be an important factor for businesses and marketers to consider in their pricing and marketing strategies.