Substitute Goods. Two phones one android htc one iphone apple. The other products the substitutes have a positive cross elasticity of demand.
Contrary to complementary goods and independent goods substitute goods may replace each other in use due to changing economic. Substitute goods or substitutes are at least two products that could be used for the same purpose by the same consumers. Substitute goods are highly competitive as they can be easily replaced by a competitor.
That is a consumer perceives both goods as similar or comparable so that having more of one good causes the consumer to desire less of the other good.
Substitute goods are highly competitive as they can be easily replaced by a competitor. Contrary to complementary goods and independent goods substitute goods may replace each other in use due to changing economic. A substitute good is defined as a product or service that is used in place of another. A substitute or substitutable good in economics and consumer theory refers to a product or service that consumers see as essentially the same or similar enough to another product.
