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en:substitute-goods-examples [2018/09/10 14:38] federico |
en:substitute-goods-examples [2018/09/10 14:41] federico |
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+ | ====== Examples of Substitute Goods ====== | ||
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**Substitute Goods** are those goods that can be used to satisfy the same necessity. Substitute Goods have a positive cross elasticity of demand. That is, when the price of one good increases, the quantity demanded of the other good increases, because the user can **substitute** one good for another. | **Substitute Goods** are those goods that can be used to satisfy the same necessity. Substitute Goods have a positive cross elasticity of demand. That is, when the price of one good increases, the quantity demanded of the other good increases, because the user can **substitute** one good for another. | ||
Complementary goods, in contrast, have a negative cross elasticity of demand. | Complementary goods, in contrast, have a negative cross elasticity of demand. | ||
- | Examples of substitute goods are: | + | Examples of substitute goods are (more than 10 examples): |
* Tea and coffee | * Tea and coffee | ||
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**Graphical Analysis of Substitute Goods:** | **Graphical Analysis of Substitute Goods:** | ||
- | {{:en:subsitute-goods-example-2.png?nolink|}} | + | {{:en:subsitute-goods-example.png?nolink|}} |