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A complementary good is a product that is typically used together with another product. In other words, the demand for one product increases the demand for the other product. When the price of one good goes up, the demand for the complementary good also tends to go down, and vice versa.

For example, peanut butter and jelly are complementary goods. When people buy peanut butter, they often also purchase jelly to make a peanut butter and jelly sandwich. If the price of peanut butter increases significantly, people may choose to buy less peanut butter, which in turn would also decrease the demand for jelly since they are often consumed together.

In summary, complementary goods are products that are consumed or used together, and changes in the price or demand of one product can affect the demand for the other.

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