ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A complementary good is a product or service that provides value to another product or service. In other words, they are two things that the customer utilises in conjunction with one another. Cereal and milk, for example, or a DVD and a DVD player.

Detailed explanation-2: -A complementary good is a good or service which is used in conjunction with another good or service. It is given this name in economics because it ‘complements’ the use of another good.

Detailed explanation-3: -Meaning of Complementary Goods An object used in combination with another product or service is a complementary good or service. Usually, when consumed alone, the complementary good has little or no value. Still, when paired with another good or service, it adds value to the overall value of the bid.

Detailed explanation-4: -A complementary good is a good that adds value to another, or, a good that cannot be used without each other. Complementary goods that cannot be used without each other are known to have a strong relationship. In other words, when the price goes up on one, the demand goes down for the other good.

Detailed explanation-5: -A substitute good is a good that serves the same purpose as another good for consumers. A complementary good is a good that adds value to another good when they are consumed together. Pepsi and Coke are a typical example of substitute goods, whereas fries and ketchup may be considered complements of each other.