Question

Difference between complementary and substitute goods?

Answer 1

Answer:

Complements are goods that are consumed together. Substitutes are goods where you can consume one in place of the other. The prices of complementary or substitute goods also shift the demand curve.

Answer 2

Substitute goods are independent to each other while as complementary goods are inter-dependent. 2. If the price of one good increases, the demand of its substitute good increases while on the other hand if the price of good increases, the demand its complementary good decreases.