Complement And Substitute Goods Examples. Mobile phones and sim cards 3. For example pancakes and maple syrup.
For example pancakes and maple syrup. Amazon kindle books and paper books. Demand for one translates into demand for the other.
The key difference is that substitute goods replace one another whilst complementary goods add value to the other.
Complementary goods in contrast have a negative cross elasticity of demand. Coke and pepsi iphone and galaxy s series nike and adidas are a few examples of substitute goods. Complementary goods in contrast have a negative cross elasticity of demand. To distinguish between substitute and complementary goods consider that substitutes are goods that are used in place of each other.
