Substitute goods are goods that consumers can choose between when making purchasing choices. If the price of good A goes up, more will choose good B. If the price of good A goes down, more will choose good A instead of good B. So a price change in one good will result in the demand for the other good to change in the same direction of the price change.
Complementary goods are goods that tend to get consumed together. For example, hot dogs and hot dog buns. If the price of good A goes up, the demand for good B will go down. If the price of good A goes down, the demand for good B will go up. So a price change in one good will result in the demand for the other good to change in the opposite direction as the price change. LINK DETAILS BELOW, :https://in.answers.yahoo.com/question/index?qid=20090727215824AAJYkDI
sir can you explain how the price of related goods influence the demand
ReplyDeleteSubstitute goods are goods that consumers can choose between when making purchasing choices. If the price of good A goes up, more will choose good B. If the price of good A goes down, more will choose good A instead of good B. So a price change in one good will result in the demand for the other good to change in the same direction of the price change.
DeleteComplementary goods are goods that tend to get consumed together. For example, hot dogs and hot dog buns. If the price of good A goes up, the demand for good B will go down. If the price of good A goes down, the demand for good B will go up. So a price change in one good will result in the demand for the other good to change in the opposite direction as the price change.
LINK DETAILS BELOW, :https://in.answers.yahoo.com/question/index?qid=20090727215824AAJYkDI