• Substitute Vs Complementary goods

    Economics

    Inyang Umoh (tutor)
    05-02-2016 06:50:00 +0000

    One concept you can expect to be asked about is the difference between substitute and complementary goods.

    Substitute Good
    The official definitions of a substitute good is a good that can be purchased as a substitute for another. An example of a substitute good would be garri and fufu. There is also the related concept of a perfect substitute. A perfect substitute is one that, in the eyes of the customer, are the same. An example of a perfect substitute would be bic and biro pens.

    Complementary Goods
    The official definitions of Complementary goods are goods that are usually purchased together. For example milo and milk.

    Can you give other examples of complementary and substitute good?



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