Answers were Sorted based on User's Feedback 1. Is This Answer Correct? More Business Administration Interview Questions. Producing estimates based on a product with dependent demand is harder because the business must also take into account how demand for its counterparts influences its demand and how outside economic factors are likely to impact both products.
Both substitutes and complements are considered products with dependent demand. Substitutes are products that can be used in place of other products, like how beef and pork are substitutes for one another.
In contrast, complements are products that are used together, like ketchup and hot dogs. They are considered products with dependent demand because demand for one rises when demand for the other falls and vice versa, while demand for complements changes in tandem.
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