Products whose demands are positively related are known as which type of products?

Products whose demands are positively related are known as which type of products?

• A. Substitute
• B. Normal
• C. Complementary
• D. Inferior

Answer: (C)

When two products are used together, their demands tend to move in the same direction—if more of one is demanded, more of the other is likely demanded as well. This positive relationship describes complementary goods. They’re pairs that go together, like printers and ink cartridges, coffee and sugar, or cameras and memory cards; their joint use means an increase in demand for one boosts the demand for the other. Substitutes behave oppositely—when one becomes more demanded, the other tends to be demanded less because they can replace each other. Normal and inferior goods describe how demand changes with income, not how two different products relate to each other; normal goods rise in demand with income, inferior goods fall.

When two products are used together, their demands tend to move in the same direction—if more of one is demanded, more of the other is likely demanded as well. This positive relationship describes complementary goods. They’re pairs that go together, like printers and ink cartridges, coffee and sugar, or cameras and memory cards; their joint use means an increase in demand for one boosts the demand for the other. Substitutes behave oppositely—when one becomes more demanded, the other tends to be demanded less because they can replace each other. Normal and inferior goods describe how demand changes with income, not how two different products relate to each other; normal goods rise in demand with income, inferior goods fall.