📚 Learning Guide
Inferior and Complementary Goods
easy

Which of the following pairs of goods are considered complementary goods?

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Learning Path
Learning Path

Question & Answer
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Understand Question
2
Review Options
3
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4
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Choose the Best Answer

A

Coffee and sugar

B

Pizza and ice cream

C

Cars and gasoline

D

Bread and butter

Understanding the Answer

Let's break down why this is correct

Answer

Complementary goods are products that are often used together, meaning that when you buy one, you are likely to buy the other as well. For example, consider peanut butter and jelly; if you buy peanut butter, you will probably want jelly to make a sandwich. This relationship is different from inferior goods, which are items that people buy less of as their income increases, like instant noodles. In the case of complementary goods, if the price of one good goes down, people are more likely to buy more of both goods. So, if peanut butter goes on sale, you might buy more peanut butter and also more jelly to enjoy with it.

Detailed Explanation

Cars and gasoline are complementary goods. Other options are incorrect because Some people think coffee and sugar are complementary because they are often used together; Pizza and ice cream might be eaten together, but they are not needed for each other.

Key Concepts

Complementary goods
Topic

Inferior and Complementary Goods

Difficulty

easy level question

Cognitive Level

understand

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