Question

Difference between substitute goods and complementary goods

Answer 1

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.

Answer 2

Answer:

Substitutes are goods that serve the same purpose as the original & can be used as an alternative.  

Complement goods are goods that are often consumed with other goods.  

Explanation:

For example if the price of pizza increases, the quantity demanded will fall and consumers will increase the demand for other fast food options.

An example of a complementary goods are printers and printer ink. The demand for printer ink will rise as more printers are bought.