What Is the Difference Between a Substitute and a Complement

question 66

Multiple Choice

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

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Definitions:

Agricultural Demand

The total demand for agricultural products, influenced by factors such as population growth, income levels, and dietary trends.

Farm Output

Farm output refers to the total quantity of agricultural products produced by a farm, including crops, livestock, and dairy products.

Inelastic Nature

A characteristic of a good or service for which the quantity demanded or supplied changes by a smaller percentage than the percentage change in price.

Monopolistic Markets

Markets dominated by a single seller, with no close substitutes for the product or service, leading to less competition and higher prices.