When peanut butter prices rose, Elvira cut back on her banana eating. For Elvira, peanut butter and bananas are, "complements in consumption."
When the price of a substitute good in consumption lowers, so does the demand for that good; conversely, when the price of a complement product in consumption rises, so does the demand for that good.
In microeconomics, supply and demand is an economic theory that explains how prices are determined in a market.
All other things being equal, it is assumed that in a competitive market, the unit price for a particular good or other traded good, such as labor or liquid financial assets, will fluctuate until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.
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