Complementary and Substitute Goods

When the price of one substitute good goes up, the demand for the other substitute also goes up

True

The decrease in price will increase her demand for salsa.

Wonder Woman is going on a Target shopping trip. She needs to purchase a snack for all of her Econ classes. As she is walking around, she notices that the price for tortilla chips has decreased. She remembers a few of her students mentioning their love for salsa and decides to pick some up. How will the decrease in the price of tortilla chips affect her demand for salsa?

Fish and chips

complementary goods

Hot Dogs and Hot Dog Buns

complementary goods

Shoes and polish

complementary goods

Solar panels & batteries

complementary goods

iPhone and the apps used with it

complementary goods

A complementary good or service is an item used in conjunction with another good or service. Usually, the complementary good has little to no value when consumed alone, but when combined with another good or service, it adds to the overall value of the offering.

Complementary Goods

Substitute goods are not competitive as they can be easily replaced by a competitor.

False

Substitute goods are two alternative goods that could be used for the same purpose. In one sense they are close substitutes but to some consumers entirely different. Substitutes present the consumer with alternative choices.

Substitute Goods

The increase in price will decrease his demand for salsa.

Superman, feeling inspired by Wonder Woman, decides that he would like to buy chips and salsa for his classes as well. He goes to Sprouts and notices that the price of chips has increased! How will that affect Superman's demand for salsa?

Dominos and Pizza Hut

substitute goods

Pepsi Cola and Coca Cola

substitute goods

Strawberries and Blueberries

substitute goods

Tea and coffee

substitute goods