What is the additional good?
Supplementary good is a material or product that can be used in conjunction with other good, and this common use often helps to create further demand for both participating goods. This double use of both goods usually provides consumer with additional usefulness and satisfaction, which is advantageous to continue buying both goods in the long run. One of the advantages associated with the production of additional goods is that demand usually increases in conjunction with demand for associated material or product.
The concept of additional goods differs from the concept of substitute good. As far as substitutes are concerned, the emphasis is placed on the exchange of one product with another product that is able to fulfill the same needs and wishes. In this scenario, it is not necessary for the accompanying product to increase the demand, just a desire to take a market share from a competitor and generate additional sales for a substitute product.Tegie, which ultimately means more sales and more profits for both goods involved.
One of the simplest ways to understand what is a supplement is to think about products that are often used to create greater customer satisfaction. For example, jelly can be considered a complementary good for peanut butter, because the combination is in a number of cultures and setting widely popular. In a similar way, potato salad can be considered to be a supplement to buy fried chicken, because two are often considered to be an ideal fare for a picnic. Gasoline can be considered a supplementary good for the use of the vehicle, as gasoline allows to use a greater level of usefulness from the vehicle ownership.
In the Instances, the profitability of the additional good is directly associated with the popularity of associated goods. If the demand is high for associated good, there is a great chance to addKové good also enjoys brisk sale and produces revenue for manufacturers. If the demand for an associated good begins to decline, it is not unusual for the sale of additional good to suffer if the manufacturer cannot convince consumers that the product can also be used in conjunction with some other good, which currently enjoys extended popularity.