In case of complementary goods, the relation given is as follows: PRICE OF TEA increases implying decrease in the DEMAND FOR TEA implying increase in the DEMAND of sugar. Shouldn't it be DECREASE IN THE DEMAND OF SUGAR? Because as in the meritnation notes, it says A RISE IN PRICE OF TEA REDUCES THE DEMAND FOR SUGAR. Pls carify this doubt ASAP!
Yes, you are correct. As tea and sugar are complementary goods so, as the price of tea increases the demand for tea falls and with this the demand for sugar also falls. This is because in case of complementary goods, if the price of one good rises then the consumer reduces his demand for the complementary good as well.