What happens to demand for a complementary good when the price of its related good rises?

When the price of a related good rises, the demand for its complementary good typically decreases. Complementary goods are products that are consumed together; for example, if the price of coffee increases, the demand for sugar, a complementary good, may drop because fewer people may want to buy coffee at the higher price. Higher costs associated with one good make the overall expense of consuming both goods more burdensome for consumers, leading them to purchase less of the complementary good.

Demand typically shifts due to changes in costs and consumer preferences. As the price rises for one item, the total expenditure necessary to enjoy both products becomes higher, prompting consumers to reevaluate their purchases. Options that suggest an increase in demand or no change do not reflect the typical consumer response to a price rise in complementary goods. Demand fluctuations might occur but would not represent a steady trend in response to price increases. Thus, a decrease in demand due to higher costs aligns with economic principles regarding complementary goods.