| Substitute Goods | Complementa |
| • These are alternative goods available to satisfy our wants. | • These are the goods which are consumed together. |
| • If the price of a product increases, the demand for its substitute also increases. | • If the price of a product increases, the demand for its complementary good decreases. |
| • Examples for substitute goods are tea and. coffee, Colgate and Pepsodant, etc. | • Examples for complementary goods are pen and ink, shoes and socks, etc. |
| • Here the demand curve shifts to the right in case of price rise. | • Here the demand curve shifts to left in case of price rise. |
| • Price and demand move in same direction. | • Price and demand move in opposite directions. |