Question

You have been asked to analyze the Value Net of the craft brewing and distilling industries in your state, and you have observed close relationships between those artisanal industries and local hospitality businesses (such as restaurants and lodging facilities) in the region under study. Those local hospitality businesses can be said to be _________.

Answer 1

Answer:

The answer is: Complementary goods and services

Explanation:

Complementary goods and services are used with another good or service. For example, sugar is complementary to coffee, fuel is complementary to cars, etc.

Usually when the price or the quantity demanded of a complementary good or service changes, the other complementary good will be affected.

In this question, we are told that restaurants and lodging facilities are complementary to beer. So if the price of beer decreases (increasing the quantity demanded), the demand for restaurants and lodges will increase.