Microeconomics Elasticity Paper - editing

Reflect on why some products become substitutes and why some are complements (e.g. hot dogs and hot dog buns).

Adam

Luis

Substitute goods are goods that can be swapped with another good and still satisfy the customer. A substitute good usually has similar characteristics as the original good, which is typically what the consumer is looking for. An example of this is if the price of gasoline rose substantially, the increase demands of hybrid vehicles would most likely be experienced instead of gasoline vehicles. Hybrid and non-hybrid vehicles are means of transportation for the consumer but the one that will most likely be purchased is the one with a lower cost.