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What is the difference between a substitute good and a complementary good?
A substitute good is one that can be used in place of another good whereas a complementary good is one that is used together with another good.
How do substitute goods and complementary goods affect demand for another good?
Substitutes and complements is the fact that a change in price of one of the goods has an impact on the demand for the other good. For substitutes, an increase in the price of one of the goods will increase demand for the substitute good. (It's probably not surprising that an increase in the price of Coke would increase the demand for Pepsi as some consumers switch over from Coke to Pepsi.) It's also the case that a decrease in the price of one of the goods will decrease demand for the substitute good.
Give an example of a substitute good?
example: tea is a substitute good for coffee or milkwhen you want to drink coffee but you can't or don't have one you can drink tea instead. or milk vice versa
Why would demand curve slope upward?
The Law of Demand states that price and quantity demanded are inversely related. This means that for a normal good, the demand curve slopes downward. A demand curve might slope upward in the event that instead of being a normal good, we could be witnessing a so-called Giffen good. The existence of Giffen goods is debatable, but in theory they can be shown to be possible. The rationale for the upward sloping demand curve is due to the real income effect on a basket of goods when one (or some) of the goods exhibits a price reduction. Under normal conditions, the reduction in price would allow you to purchase more of that good. However, if this is a Giffen good, the consumer will consume less of it in order to purchase more of another good. This is not to be confused with an inferior good, for which a reduction in price leading to an increase in purchasing power results in substituting an inferior good (hamburger) in favour of a normal good (steak). This causes a shift in the demand curve. For Giffen goods, no close substitute would cause the consumer to spend less on the cheaper good in order to purchase more of a non-substitute good, say, pencils wherein the cost of rice is reduced.
The exchange of one good or service for another is?
Trade. If you are trading one good or service for another, it is called bartering.
What is substitute goods?
Good that can be used in place of another good.
What is the difference between a substitute good and a complementary good?
A substitute good is one that can be used in place of another good whereas a complementary good is one that is used together with another good.
What is an example of substituted goods?
Substitute goods are goods that can serve as replacements for one another; when the price of one increases, demand for the other increases. One may substitute tea for coffee. A perfect substitute is an identical product. One may substitute a Ford for a Toyota.
Is an example of substitute goods?
Substitute goods are goods that can serve as replacements for one another; when the price of one increases, demand for the other increases. One may substitute tea for coffee. A perfect substitute is an identical product. One may substitute a Ford for a Toyota.
What word can you substitute for their?
One possible substitute for "their" is "his" or "her" depending on the gender of the person/people being referred to. Another substitute can be "its" when referring to a non-human object or entity.
What's a substitute for cheddar?
I have personally found that Colby works well as a substitute.
What is another word for un-normal?
Paranormal is a good one- so is unusual or original. Try rare.
What is a one word substitute for a man who accompanies another in a crime?
Accomplice
What is a one word substitute for the Surrendering of a person by one state to another for trial there?
extradition
How do substitute goods and complementary goods affect demand for another good?
Substitutes and complements is the fact that a change in price of one of the goods has an impact on the demand for the other good. For substitutes, an increase in the price of one of the goods will increase demand for the substitute good. (It's probably not surprising that an increase in the price of Coke would increase the demand for Pepsi as some consumers switch over from Coke to Pepsi.) It's also the case that a decrease in the price of one of the goods will decrease demand for the substitute good.
What is a sentence with the word substitute?
I used applesauce as a substitute for oil in the recipe to make it healthier.
What is the term for using one thing to stand for another?
The words 'substitute' and 'proxy' both mean using one thing to stand for another.
