How does an increase in the price of a complement usually affect demand?

When the price of a complement increases, it typically leads to a decrease in the demand for the original good. Complementary goods are products that are often consumed together; for example, if the price of coffee rises, it may result in a decrease in the demand for sugar, assuming that people use sugar in their coffee.

This relationship exists because consumers consider the total cost of using both complements together. If the price of one goes up, the overall cost of enjoying the combined experience also increases, which can lead consumers to purchase less of the original good. As a consequence, the demand for that original good decreases, reflecting the interconnected nature of complementary goods in consumer behavior.