Distinguish between complementary goods are substitude goods.

1.	Distinguish between complementary goods are substitude goods.
Answer» Solution :(i) Substitue goods are those goods which can be used in place of one another to satisfy a particular WANT WHEREAS COMPLEMENTARY goods are those goods which are used together to satisfy a particular want. (ii) Substitue goods have competitive DEMAND whereas complementary goods have joint demand. (iii) Price of one SUBSTITUTE good has a positive relationship with qunatity demanded of another substitute good whereas price of one complementary good has a negative relationship with demand of another complementary good.

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