Perfect Substitutes and Perfect Complements Homework Help

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Perfect Substitutes and Perfect Complements Assignment Help

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In Economics you will get to study the topic of Perfect Substitutes and Perfect Complements.Many students get confused while understanding this topic because they are unable to comprehend the exact interpretation and the graphical analysis. If you are facing the same problem, then it’s high time that you should opt for perfect substitutes and perfect complements homework help.

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Details of the various goods:

Get an idea about complementary and substitute goods before knowing perfect substitutes and perfect complements

Complementary goods or in short you can say complements have negative cross elasticity of demand. Thus the demand for the good will increase when there is a fall in price of another good. Or you can also say that the demand of the good will fall down if the price of another good will be raised. Examples of complementary goods are like car and petrol, printer and ink cartridges, tea and sugar, DVD players andDVDs, etc.

Substitute goods or you can say substitutes have positive cross elasticity of demand. These are those products that the consumer considers similar. So the demand of one good will increase if the price of another good is increased. Substitute goods can work as a complete replacement if the conditions associated with a given good changes. Example can be tea and coffee, petroleum and natural gas, etc.

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Perfect substitutes

Perfect substitutes are those goods which can work as the perfect replacement for each other. For example, Coke and Pepsi are perfect substitutes. There will be no convexity in the indifference curve associated with a perfect substitute, and the MRS will be 1, so it’s going to appear like a straight line.

Perfect complements

There are some cases where the goods are perfectly complementary. A perfect complement is a good that one needs to use together with the other good so that want can be satisfied. You can also say that it has to be consumed together with another good. You will observe that perfect complement products will have indifference curves that will be L shaped or you can also say they depict a right angle. One example for perfect complements is left shoe and right shoe.

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