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1. |
What is the difference between Subsitute goods and complimentary goods? |
Answer» Complementary goods: meaning of complementary is ‘useful or attractive together’. These are the goods which used together. Increase/ decrease in demand for one good will increase/decrease demand for other good also.Ex: car and petrol, mobiles and mobile covers etcSubstitute goods: substitute goods have inverse relationship to each other i.e Increase in price of one good will decrease the consumption of that particular good and demand for another good increases.Ex: increase in price of coffee makes people to have tea instead of coffee.\xa0 | |