Elasticity Demand Essay

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Elasticity Paper Tonya Sanders, Stephanie Crocker, Robert Farrell, Tyson Zawadzki, Phillip Morris ECO/365 August 18, 2014 Benjamin Zuckerman Substitute Goods and Complement Goods Complementary goods are goods that are created to support other goods, it goes to follow that with complementary goods, the more use of the one good cause an equal increase in use of the other good. Substitute goods are goods that are created to take the place of another product, it goes to follow here that an increase in use of an item that is a known replacement of a different item, will cause that good to be labeled as a substitute good for the first good. Complementary goods and substitute goods can be used as examples in changes of demand and quantity demand. Complement Goods In the world we live in today the creation of goods is most always done with a complement good in mind. Two individual goods will get combined and each good compliments the other. For example peanut butter and jelly, hot dogs and buns, milk and cereal, computer and mouse, coffee and biscuits, pencil and paper, etc. Two goods that are complementary, in New England anyways, is fluff and peanut butter. This concoction has a most unusual name: the Fluffernutter sandwich. Other important complementary goods are the toothbrush and toothpaste. These goods are considered complimentary goods, because without each other both goods wouldn’t have much significance. Substitute Goods The difference in substitute products is a choice by the consumer to decide which part of an item is important to them. Consumers may choose a substitute product because it produces the same effect, or does the same job, but is lesser in price. The item that is lesser in price may not last as long as the sustaining product. The customer is willing to forgo a certain amount of quality for the quantity of money that they are saving at

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