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Substitute Goods Coke and Pepsi, iPhone and Galaxy S series, Nike and Adidas are a few examples of substitute goods. If price of Coke increases, demand for Pepsi should increase because many Coke consumers will switch over to Pepsi. Similarly, prices of iPhone and Galaxy S affect their mutual demand. Given that there are many fanboys who will re prioritize their spending to afford an iPhone even after the price increase, many rational consumers will weight their preference for one product over the other and the premium they are willing to pay. Complementary Goods iPhone and iPhone skins, air travel and hotels, etc. are examples of complementary goods i.e. goods that are used/consumed together. If iPhone becomes expensive and its quantity demanded decreases, you would expend the demand for iPhone covers to drop too and vice versa. It follows that demand for a product is to some extent dependent on the price of its complementary goods. Get notes from here https://instagram.com/padhaku_log?igs... Check out our playlists- Law - • How Substantive Law different from Procedu... Difference Between playlist • LAW Difference Between Videos | LEGAL Conc... General terms- • Плейлист Economics- • Anti Dumping Duty | What is Anti Dumping D... Geography - • What are Perennial and Non- Perennial Rive... General Knowledge- • Видео Case Studies- • Salomon vs. Salomon and Co. Ltd Case | Sep... GST Registration- • Видео CSEET - • Видео • Видео Current affairs- • Плейлист Connect with us- Instagram- https://instagram.com/padhaku_log?igs... Facebook- / padhaku-log-101091301476679 Mail id- [email protected] Watsapp-9630227777 Telegram-9630227777 About us: Padhaku Log is a platform specially created for those students who live in remote areas and don’t have access to fancy coaching classes. A channel which wants to bring parity in knowledge level of all. #substituteandcomplementarygoods #economics #basiccoceptsofeconomics #commercestudents #cseet #ca #cs #icsi #icai #cma #CLASS11 #class12 #economicterms