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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 | ||