Eco 365 Elasticity Paper

Topics: Substitute good, Want, Consumer theory Pages: 3 (320 words) Published: February 2, 2015

Elasticity Paper
Mark Bullock
Elasticity Paper
Mark Bullock
A reason that substitute goods are goods that can be used in activities aimed to satisfy the same needs, one in the place of another. Also the buyer carries out an actual and conscious process of choice about them, which leads the buyer to prefer one to another.

A reason that products are considered compliments is because a product can be considered a complement when it shares a beneficial relationship with another product offering. In an economic sense, when the price of a good rises, the demand for its complement will fall because consumers don't want to use the complement alone.

So let’s say you go out vehicle shopping, you aim to satisfy yourself with one or another particular model of vehicle that will satisfy your needs. Before you even leave the house, you will already have one or two particular models of a vehicle in mind. These pre-decisions will be what lead you to buy that particular model or two that satisfies your needs.

Once you get on that vehicle lot, you then begin your search for that particular vehicle that will satisfy your needs, and you find what you are looking for. Now, you have options that will come complimentary with your vehicle of choose. Your vehicle will already come equipped with all the standard features, the anything you add to the vehicle during the purchase are considered complimentary.


You buy the vehicle at 15,000.00
You add Allow Wheels instead of standard wheels for $250.00 X4 You add Leather Interior instead of standard Cloth Seats for $200.00 X3 You add Touch Screen Audio Systems instead of the stock stereo for $500.00 You add BeatsByDre Audio Speakers instead of stock speakers for $100.00 X6

Everything that you substituted from stock items that automatically come with the vehicle are now considered complimentary items.
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