Final answer:
Supporting services are mainly used to enhance tangible products by adding value and improving their functionality, different from a substitute which would replace the product. Technological advances can act as both substitutes and complements to labor, affecting the demand for various types of workers. Option 2 is correct.
Step-by-step explanation:
Supporting services are increasingly being used to enhance tangible products. In the world of business and economics, a substitute is a good or service that can be used in place of another. However, rather than substituting, supporting services add value to existing products. For example, the integration of smart technology in home appliances has not replaced the appliances themselves but has enhanced their functionality and value to the consumer.
Furthermore, as technology advances, it often leads to both substitution and complementarity in the labor market. For instance, word processing technology reduced the need for typists, resulting in a leftward shift in the demand curve for this occupation. Conversely, new software technologies have increased the demand for information technology professionals, demonstrating a rightward shift in the demand curve for these skilled workers. This showcases how technology can both substitute and enhance human labor in different scenarios.