Learning English
complimentary and substitute goods
Lestro
2019. 9. 18. 05:42
The professor mainly talks about how substitute and complementary goods have influences on the demand and supply of product along with its price.
In the case of complimentary goods, the
demand of a product is closely related to that of another product which is consumed(used) along with. For example, if the demand for hot dogs increases, it will affect the demand for buns because when buying hot dogs, people usually buy buns as well.
As an example of a substitute good, the professor brings up butter and margarine. If the price of butter goes up, people will buy margarine instead. That is, the price increase of a product will cause more demand for the other product. Thus those two types of goods have an influence on each other.
In the case of complimentary goods, the
demand of a product is closely related to that of another product which is consumed(used) along with. For example, if the demand for hot dogs increases, it will affect the demand for buns because when buying hot dogs, people usually buy buns as well.
As an example of a substitute good, the professor brings up butter and margarine. If the price of butter goes up, people will buy margarine instead. That is, the price increase of a product will cause more demand for the other product. Thus those two types of goods have an influence on each other.