Difference between complementary goods and substitute goods
substitute goods
1.substitute goods are those goods which can be interchanged for use.
2.when price of a substitute good increases,demand for a good rises and vice versa.
3.examples-tea and coffee, pepsi and coke.
complementary goods
1.complementary goods are those goods which complete the demand for each other.
2.when price of a complementary good increases, demand for a good falls and vice versa.
3.examples-pen and ink, bread and butter.
1.substitute goods are those goods which can be interchanged for use.
2.when price of a substitute good increases,demand for a good rises and vice versa.
3.examples-tea and coffee, pepsi and coke.
complementary goods
1.complementary goods are those goods which complete the demand for each other.
2.when price of a complementary good increases, demand for a good falls and vice versa.
3.examples-pen and ink, bread and butter.