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Question -

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



Answer -

  1.  Complementary goods are those which are useless in the absence of other goods and which are demanded jointly.
                        
  1. There would always exist an inverse relationship between price of complementary goods and demand for given commodity.
  2.  It means, with a rise in price of complementary goods, the demand for given commodity falls and vice-versa.
  3.  For example pen and refill, tea and sugar are complements to each other.

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