Explanation

[arifjama...@gmail.com]

Hi,

I have a question about what is happening in this video at 00:24:27 -

http://www.youtube.com/watch?v=rFHdbLWvu9g#t=1467s.

Pls give an example to understand this concept? Pls give examples of substitute goods or complementary goods so that the concept could be understood..

Thanks!

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Reference Key - Key('StudentQuestionEntity', 6551405673316352, namespace='ns_noc21_mg90')

[NOC21 MG90]

Dear Learner, 

The classic example of substitute goods is "Tea" and "Coffee", if the price of the coffee starts increasing then people will increase the consumption of tea. 

For complimentary goods think of the example of car and petrol. If the demand for cars grows and people start buying more cars then there will be increase in demand for petrol as well.