Which of the following describes the outcome when two goods are complements?

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Prepare for the TAMU ECON202 Principles of Economics Exam 1 with detailed study guides and multiple choice questions. Boost your understanding and confidence ahead of exam day!

When two goods are complements, they are goods that are typically consumed together. This means that the demand for one good is linked to the demand for the other. When the price of one complementary good decreases, it becomes cheaper to buy, leading to an increase in its consumption. As a result, consumers will also increase their consumption of the related good because they are used together. Therefore, the demand for one good increases as the price of the other decreases, highlighting the interdependent nature of their demand.

This relationship emphasizes the concept of complementary goods in economics, where the decrease in the price of one good positively affects the demand for its complement. Understanding this relationship helps in making predictions about market behavior and consumer choices.