The basic definition says that the good which experiences a surge in demand when the price of another good plunge are called complements or complementary goods.
To elaborate on the phenomenon, let us take the example of printers and ink cartridges. If the price of printers falls, people tend to buy more printers, resulting in an increase in demand for ink cartridges as well. The reverse is also true. If there is a hike in the price of printers it will result in a decrease in demand for ink cartridges.
Computers/Laptops and software programs can be considered a classic example of complementary goods. When a new computer is bought we end up buying some software programs, specifically antivirus software programs. The laptop models with DOS version is usually bought with an OS program as a complementary good.
To elaborate on the phenomenon, let us take the example of printers and ink cartridges. If the price of printers falls, people tend to buy more printers, resulting in an increase in demand for ink cartridges as well. The reverse is also true. If there is a hike in the price of printers it will result in a decrease in demand for ink cartridges.
Computers/Laptops and software programs can be considered a classic example of complementary goods. When a new computer is bought we end up buying some software programs, specifically antivirus software programs. The laptop models with DOS version is usually bought with an OS program as a complementary good.
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