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What is a substitute good example?
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“Products that can satisfy some of the same customer needs as each other. Butter and margarine are classic examples of substitute goods.” Buses or bicycles, therefore, are substitute goods for cars. Substitute goods are two or more products that the consumer can use for the same purpose.
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Examples of Substitute Goods
- Coca-cola and Pepsi.
- Car, motorbike, bike and public transport.
- Butter and margarine.
- Tea and coffee.
- Bananas and Apples.
- Cigarettes and e-cigarettes.
One may also ask, what are complementary and substitute goods? Complements are goods that are consumed together. Substitutes are goods where you can consume one in place of the other. When the price of a substitute good decreases, the quantity demanded for that good increases, but the demand for the good that it is being substituted for decreases.
Likewise, people ask, what is an example of a complementary good?
Complementary goods are a pair of goods consumed together. As the price of one goes up, the demand for both the goods fall. Some examples of complementary goods are: Cars and Petrol. Shoes and Polish.
What is perfect substitute?
A perfect substitute is a situation where two goods are viewed as identical. Perfect substitutes are commodities such that it is impossible to build a brand whereby customers prefer your product. Producers of a perfect substitute must except a market price and typically have no influence on the price.
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