When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.
A. Substitutes
B. durable and non-durable
C. intermediate and final
D. complements
Correct Answer:
Option D – complements
Explanation
A complementary goods is a goods whose use is related to the use of associated or paired goods. An increase in the price of one will also affect the demand of the other good.
Example; computers need software to function. An increase in the price of a computer system will affect the demand of software
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