The quantity of a good that the consumer chooses can increase or decrease with the rise in the price of a related goods depending on whether the two goods are substitutes or complementary to each other. Goods which are consumer together are called complementary goods. Examples of goods which are complement to each other include tea and sugar, shoes and shocks, pen and ink, etc, Since tea and sugar are used together, an increase in the price of sugar is likely to decrease the demand for tea and decrease in the price of sugar is likely to increase the demand for tea. Similar is the case wit other complements. In general, the demand for a good moves in the opposite direction of the price of its complementary good.

Those goods which can be used together are called ____________ goods.

Complementary goods

The correct answer is option (2) : Complementary goods

• Substitute goods: These are goods that can fulfill a similar need or function for the consumer. An increase in the price of one good will typically lead to an increase in the demand for the other substitute good (e.g., butter and margarine).
• Complementary goods: These are goods that are used together and enhance each other's value. An increase in the price of one good will typically lead to a decrease in the demand for the other complementary good (e.g., printer and ink cartridges).
• Consumption goods: These are goods that are directly used by consumers to satisfy their wants and needs (e.g., food, clothing, electronics).
• Capital goods: These are durable goods used by businesses to produce other goods and services (e.g., machinery, buildings, equipment).