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Differentiate between the substitutes and complement products and give examples for each

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User Varvara
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A substitute has the same traits, preferences or goals as the normal goods while a complement is an additive or an addition to enhance the attributes of a product. An example of a perfect substitute is fruits. For instance, a consumer normally buys both apple and oranges in the grocery store. The prices of the apples and oranges in the market are the same. When the price of an apple doubles, the demand for an orange will also increase. This means that the buyer would buy more oranges as substitute to the apples. An example of a complement is a creamer. When a consumer buys coffee, he tends to buy a creamer to complement with his coffee. Complements go together with the normal goods as enhancement.
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User Freytag
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