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Substitutes are goods or services that can replace each other, meaning that an increase in the price of one can lead to an increase in demand for the other. For example, butter and margarine are substitutes; if the price of butter rises, people may buy more margarine instead. Complements, on the other hand, are goods that are often used together, so an increase in the price of one can decrease the demand for the other. An example of complements is coffee and sugar; if the price of coffee rises significantly, the demand for sugar may drop as fewer people buy coffee.

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1mo ago

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