write a different between substitute and complement goods?? pls correct answer
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Answers
Substitute goods are the goods which can be used in place of each other to satisfy a want. Complementary goods are the goods which are to be used together to satisfy a want. 3. When the price of one good increases, then the demand for its substitute will increase.

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Explanation:
We all know that demand for a product is mainly affected by its price, but there are some other factors which can also affect its demand. One such factor is ‘Price of Related goods’, wherein the term ‘related goods’ means complements and substitutes. In simple words, Complementary Goods are the goods that complete each other. This means that such goods are used in conjunction with one other, which enhances their value. In other words, these goods have no value when they are consumed alone.
On the other hand, substitute goods are those goods that compete with each other. Meaning that these goods can be used as a replacement for another good. The relationship depicted by complements and substitutes are covered under ‘Cross Demand‘.
What is Cross Demand?
Cross Demand or cross elasticity of demand, determines the responsiveness of the consumers in the quantity demanded of one commodity, in case the price of another inter-related commodity increases or decreases, while other things remain constant. The sign, i.e. plus or minus, plays a significant role in the cross-price elasticity of demand, as it determines whether the commodities are complements or substitutes.
In this write-up, you will get to know about the difference between complementary goods and substitute goods.
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