Question

What is the difference between a complementary good and a substitute good? Give an

example of each kind of good for each of these products: ice cream, baseball game tickets,
and pencils.

Answer 1

There are many differences between substitute goods and complementary goods.Like as:

Substitute goods: When a goods or service replace the other one or used as the alternative then it is a substitute goods.

Complementary goods: When a goods or service complements the other one they are complementary goods. It means during the consume of one goods or service,consumer needs it's complementary goods.

Ice cream: Smoothie is a substitute and pastry is a complementary goods.

Baseball game tickets: Work is a substitute and popcorn and drink is a complementary goods.

Pencil: pen is a substitute and notebook is a complementary goods

Step-by-step explanation: