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In this video, we're going to talk about compliments and substitutes and what makes a compliment versus a substitute in the following examples.
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So, the first example here is new cars versus used cars.
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Are these substitutes or complements? well, let's think about it this way.
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If you get a new car, would you get a used car? and let's look at it the opposite way.
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If you buy yourself a used car, would you need a new car? well, the answer is probably not immediately, right? so these two items are substitutes because you getting one necessarily means that you probably would not get the other one.
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Let's look at our next example.
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Houses and washing machines.
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If you get a house, does that mean that you won't get a washing machine? probably not.
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And your purchase of a washing machine doesn't stop you from buying a house or it doesn't make you less likely to buy a house.
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These two are actually more compliments.
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If you have a house, you'll probably buy your own washing machine.
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Sorry, these are compliments.
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Now, uck boots and apple watches...