Question

. Differentiate between complementary and substitute goods. Give at least two examples
for each type of goods.

Answer 1

Answer:

complementry good is a good whose use is related to the use of an associated or paired good two good (a and b) are complementary if using more of good A requires the use of more of good b for example the demand for one good genrates demand for the other ,cereal and milk or a dvd and a DVD player

A substitute or substitubal good ,in economics and consumer theory refers to a product or service that consumers see as essentially the same or similar enough to another product put simply a substitute is a good that can be used in place of another substitute goods are two goods that can be used in the place of one another for example dominos and pizza hut,pancakes and maple syrup