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Complement And Substitute Goods Examples

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Complement And Substitute Goods Examples. Change in price of one product in pair of substitute goods can cause demand curve for other good to shift. To distinguish between substitute and complementary goods consider that substitutes are goods that are used in place of each other.

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On the other hand a car and tire can be said to be complementary goods. To distinguish between substitute and complementary goods consider that substitutes are goods that are used in place of each other. Bananas and apples and oranges.

Different brands of cars are substitute goods.

The key difference is that substitute goods replace one another whilst complementary goods add value to the other. To distinguish between substitute and complementary goods consider that substitutes are goods that are used in place of each other. Shoes and insoles 8. Burger and burger buns 5.

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