When prices rise, the type of good that might not be bought are complement goods. Complement goods are products that are typically consumed together; for example, if the price of coffee rises significantly, people may buy less coffee and, as a result, also buy less cream or sugar, which are complements to coffee.
In contrast:
- Substitute goods are alternatives that consumers might turn to if the price of one good rises (e.g., if the price of butter rises, people might buy margarine instead).
- Inferior goods are those that people buy more of as their income decreases, and their consumption may not necessarily decline when prices rise.
- Luxury goods might still be purchased by individuals who can afford them, even when prices rise, as they are often not essential to daily life.
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