Is Coke and Pepsi a substitute or complement?

For example, Pepsi Cola and Coca Cola are substitutes. Complementary goods and substitute goods are good examples to illustrate the difference between changes in demand vs changes in quantity demanded. Here we have the demand curves for two complementary goods (A and B).

Is Pepsi Coca a substitute for Coca Cola?

The statement is true. Pepsi and Coke can be considered as substitutes.

What is the substitute product for Coke?

Main substitutes of Coca Cola products are the beverages made by Pepsi, fruit juices, and other hot and cold beverages. The number of substitutes of Coca Cola products is high. There are several juices and other kinds of hot and cold beverages in the market. The switching costs are low for the customers.

What are substitutes give examples?

Substitute goods are two goods that can be used in place of one another, for example, Dominos and Pizza Hut. By contrast, complementary goods are those that are used with each other. For example, pancakes and maple syrup.

What are two goods that can be considered substitutes?

An example of substitute goods is Coca-Cola and Pepsi; the interchangeable aspect of these goods is due to the similarity of the purpose they serve, i.e fulfilling customers’ desire for a soft drink. These types of substitutes can be referred to as close substitutes.

What are the types of substitutes?

There are two types of substitute goods: indirect and direct. A direct substitute is whereby two products can be readily exchanged for one another. Think of Pepsi and Cola. By contrast, an indirect substitute is where two goods can still be replaced by one another, but have a weak correlation.

What do you mean by substitutes?

What Is a Substitute? 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. Put simply, a substitute is a good that can be used in place of another.

Which of the following is an example of substitute good?

Juice and cold drinks can be taken in place of each other. Therefore,they are substitute goods as substitute goods are those goods where demand of one good rises when the price of another good gets increased.