Demand and Supply Question

[lordofstarks22]

Demands of some goods depends on other Good’s demand . what are some examples for that ?!

[Joshua Fernandez]

Good question!

It is important to start off by pointing out that the main “driver” for a change in demand of a good will be a change in price of that good, which will in turn affect the demand.

There are more or less two types of goods, complementary goods and substitute goods.

Complementary good are goods that go well together. For example milk and cereal. So if the demand for cereal is high the demand for milk will also be high.

Conversely, substitute goods are goods that don’t go well together, or can act as an alternative. For example tea and coffee. If the demand for tea is high, the demand for coffee could be low.

 

[lordofstarks22]

Reply to Joshua Fernandez of #4374:

Good answer .Thank you so much for your answer .that was helpful

[Ben]

Here is a link I found with some good examples of complementary goods.

https://www.quora.com/What-are-some-examples-of-complementary-goods

Hope it helps!

[lordofstarks22]

Reply to Ben of #4393:

Thank you so much for your answer ..it was very helpful

[Author]

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