Are Two Goods Complements if an Increase in the Price of One Good Leads to an Increase in Demand for the Other?

The statement is b) false. In economics, two goods are considered complements if an increase in the price of one good leads to a decrease in the demand for the other good. This typically happens because when the price of one good rises, consumers will tend to buy less of that good and consequently buy less of its complementary good as well. For instance, if the price of coffee increases, consumers may buy less coffee and, as a result, may also buy less sugar, which is a complement to coffee. Therefore, the correct interpretation is that an increase in the price of one complementary good leads to a decrease in the demand for its partner, not an increase.