As the price of a gym membership increases, the quantity of bottled water that people buy decreases How do we categorize gym memberships and bottled water? We categorize gym memberships and bottled water as __ A. normal goods B. complements C. inferior goods D. substitutes

## Step 1<br />The problem presents a scenario where the price of gym memberships increases and the quantity of bottled water bought decreases. This indicates that the two goods are related in such a demand for one good decreases when the price of the other good increases.<br /><br />## Step 2<br />This relationship is characteristic of complementary goods. Complementary goods are goods that are typically used together. For example, in this case, gym memberships and bottled water are complementary goods because they are often used together. People often buy bottled water to drink during their gym workouts.<br /><br />## Step 3<br />When the price of gym memberships increases, people are less likely to join the gym and therefore buy less bottled water. This is because the two goods are complementary, and the demand for one good decreases when the price of the other good increases.