Professional Documents
Culture Documents
Econ 008
Econ 008
3. Transportation Industry:
- Substitutes: Air travel and train travel are substitutes in the transportation industry. If the
price of air travel increases significantly, some consumers may opt for train travel instead.
- Complements: Rental cars and hotel accommodations are complements in the
transportation industry. When consumers travel, they often need both a rental car and a
place to stay, so an increase in the price of rental cars may decrease the demand for hotel
accommodations.
5. Clothing Industry:
- Substitutes: Nike and Adidas athletic shoes are substitutes in the clothing industry. If the
price of Nike shoes increases, some consumers may choose to purchase Adidas shoes
instead.
- Complements: Socks and shoes are complements in the clothing industry. Consumers
typically wear socks with shoes, so an increase in the price of socks may decrease the
demand for shoes.
These examples demonstrate how substitutes and complements can vary across different
industries and products. The availability and pricing of substitutes and complements can
significantly influence consumer preferences, purchasing decisions, and market competition.