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Contrary to complementary goods and independent goods, substitute goods may replace each other in use due to changing economic conditions. [2] 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 ...
In economics, a complementary good is a good whose appeal increases with the popularity of its complement. [ further explanation needed ] Technically, it displays a negative cross elasticity of demand and that demand for it increases when the price of another good decreases. [ 1 ]
< implies two goods are complements. Consumers purchase less B when the price of A increases. Consumers purchase less B when the price of A increases. Example: the cross elasticity of demand of entertainment with respect to food is −0.72, so 1% increase in the price of food will decrease the demand for entertainment by 0.72%.
Price of related goods: The principal related goods are complements and substitutes. A complement is a good that is used with the primary good. Examples include hotdogs and mustard, beer and pretzels, automobiles and gasoline. (Perfect complements behave as a single good.) If the price of the complement goes up, the quantity demanded of the ...
In auction theory and competitive equilibrium theory, a valuation function is said to have the gross substitutes (GS) property if for all pairs of commodities: () (). I.e., the definition includes both substitute goods and independent goods , and only rules out complementary goods .
These fuels are intended to substitute for more carbon intensive energy sources like gasoline and diesel in transportation and can help to contribute to decarbonization and reductions in pollution. [ 2 ] [ 4 ] [ 5 ] Alternative fuel is also shown to reduce non-carbon emissions such as the release of nitric oxide and nitrogen dioxide , as well ...
Fuel additives in the United States are regulated under section 211 of the Clean Air Act (as amended in January 1995). The Environmental Protection Agency (EPA) requires the registration of all fuel additives which are commercially distributed for use in highway motor vehicles in the United States, [8] and may require testing and ban harmful additives.
Conventional fuels include fossil fuels such as coal, oil (including fuel oil, diesel fuel, and gasoline), and natural gas. [2] [circular reference] Fossil fuels have many negative externalities, most notably air pollution and contributing to climate change. Both the extraction and combustion of conventional fuels have negative externalities.