Final answer:
If good A and good B are complements, the price of good A will decrease as the price of good B increases, indicating a negative cross-price elasticity. Changes in the price of one complement affect the demand for its companion, in contrast to substitute goods where price changes have an inverse effect on demand.
The correct answer is 1).
Step-by-step explanation:
If good A and good B are complements, there is a particular type of relationship between the prices of these goods. Specifically, such goods exhibit negative cross-price elasticities. This means that if the price of good B increases, it usually leads to a decrease in the quantity demanded for good A, and vice versa.
For example, if the price of golf clubs (good B) rises, we can expect the demand for golf balls (good A), which is a complement, to decrease. As a consequence, the prices are not independent and don't often move in the same direction if the goods are strictly complements.
Given the prices of complementary goods are closely connected due to the combined use of the goods, option 1 correctly states that the price of good A will decrease as the price of good B increases.
This relationship is fundamental to understanding how market forces affect demand for complementary goods. Conversely, this relationship is opposite in substitution goods where a higher price for one leads to increased consumption of the other.