📚 Learning Guide
Complementary Goods and Demand
hard

Muffins:Coffee :: Cars:?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Gasoline

B

Bicycles

C

Public Transport

D

Motor Oil

Understanding the Answer

Let's break down why this is correct

Answer

Muffins and coffee are often enjoyed together, making them complementary goods. When the demand for coffee increases, people are likely to buy more muffins to go with it. Similarly, cars and gasoline are complementary goods because when more people buy cars, the demand for gasoline usually goes up as well. For example, if a new car model becomes very popular, more people will need gas to drive those cars. So, just like muffins and coffee, cars and gasoline are connected in how their demand affects each other.

Detailed Explanation

Muffins and coffee are often enjoyed together. Other options are incorrect because Bicycles are not needed for cars; Public transport is an alternative to cars, not something that goes with them.

Key Concepts

Complementary Goods
Cross-Price Elasticity
Market Behavior
Topic

Complementary Goods and Demand

Difficulty

hard level question

Cognitive Level

understand

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