Answer :

Substitute goods and complementary goods can be differentiated below:


1. 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.


2. For example- coffee and tea, Pepsi and coca cola, etc. For example- a car and petrol, ink and pen, etc


3. When the price of one good increases, then the demand for its substitute will increase.When the price of one good fall, then the demand for its complementary will increase.


4. When the price of one good decreases, then the demand for its substitute will decrease.When the price of one good rise, then the demand for its complementary will decrease.


OR


Normal goods and inferior goods can be differentiated below



Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :

What is meant by Economics - Board Papers