Advertisement Remove all ads

With Suitable Examples Differentiate Between Complementary Goods and Substitute Goods. - Economics

With suitable examples differentiate between complementary goods and substitute goods.

Advertisement Remove all ads

Solution

Substitute goods are goods which can be used in place of one another for the satisfaction of a particular want. Demand for a commodity varies directly with the price of a substitute good, say coffee and tea.
Complementary goods are goods which are used together to satisfy a particular want. Demand for a commodity varies inversely with the price of a complementary good, say computer hardware and software.

Concept: Concept for Demand and Supply
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×