ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Cars and petrol are complementary goods since when the price of the petrol increases then the demand for cars fall. Since the price of the petrol and demand for the cars are inversely related, they are complementary goods.

Detailed explanation-2: -A complementary good is a product or service that provides value to another product or service. In other words, they are two things that the customer utilises in conjunction with one another. Cereal and milk, for example, or a DVD and a DVD player.

Detailed explanation-3: -Within the auto industry, vehicles and petroleum are considered complementary goods whereas gas-guzzling trucks and SUVs are similar enough to their smaller more fuel-efficient counterparts to be considered reasonable substitutes.

Detailed explanation-4: -competitive goods Was this answer helpful?

Detailed explanation-5: -Answer and Explanation: When the price of gasoline increases then there would be a decrease in demand for tires. Given Gasoline and tires are complementary goods. This means there is an inverse relationship between the price of gasoline and the quantity of tires.