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QuestionEconomics

What is the difference between complementary and substitute goods? Provide one example of each.
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Step 1
I'll solve this economics problem by explaining complementary and substitute goods with clear examples:

Step 2
: Define Complementary Goods

Complementary Goods: Printers and Printer Ink\text{Complementary Goods: Printers and Printer Ink}
Complementary goods are products that are used together and have an inverse demand relationship. When the price of one good increases, the demand for both goods decreases. Example of Complementary Goods: - If printer ink prices rise, fewer people will buy printers - The goods are "complementary" because they are used together - An increase in one good's price reduces demand for the other

Final Answer

- Complementary Goods: Printers and Printer Ink (used together) - Substitute Goods: Coca-Cola and Pepsi (can replace each other)

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