What is the difference between a substitute and a complement?
A)Substitutes reduce the value of a product, whereas complements increase value
B)Complements reduce the value of a product, whereas substitutes increase value
C)Complements cannot be used together, whereas substitutes can
D)Complements increase the average price of any of them, whereas substitutes do the opposite

Question

Quizplus · Accepted Answer

Substitutes are products that can be used as an alternative to each other, which means an increase in the price of one will lead to an increase in demand for the other. This reduces the value of the original product. On the other hand, complements are products that are used together and an increase in the price of one may lead to a decrease in the demand for the other, but both products increase the overall value when used together.

What Is the Difference Between a Substitute and a Complement