What is the difference between substitutes and complements in economics?

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2026-03-03 15:50

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In economics, substitutes are products that can be used in place of each other, while complements are products that are used together. Substitutes have a negative relationship in demand, meaning when the price of one goes up, the demand for the other increases. Complements have a positive relationship in demand, meaning when the price of one goes up, the demand for the other decreases.

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