ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A substitute is a product or service that can be easily replaced with another by consumers. In economics, products are often substitutes if the demand for one product increases when the price of the other goes up.

Detailed explanation-2: -A decrease in the price of substitute goods leads to an decrease in the demand for given commodity and vice versa. Eg., if price of a substitute good (say coffee) decreases, then demand for given commodity (say tea) will fall, so demand for a given commodity is directly affected by change in price of substitute goods.

Detailed explanation-3: -Substitute goods are goods that are regarded by the customer to be the same, such that they may be used in place of one another and deliver the same amount of satisfaction. Complementary Items, on the other hand, are goods that are utilized by the customer jointly and are useless when eaten alone.