📚 Learning Guide
Substitutes and Complements in Economics
easy

Which of the following pairs of goods are most likely to be considered complements?

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Learning Path
Learning Path

Question & Answer
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2
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3
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Choose the Best Answer

A

Coffee and tea

B

Printers and ink cartridges

C

Bread and butter

D

Cars and gasoline

Understanding the Answer

Let's break down why this is correct

Answer

In economics, complementary goods are products that are often used together, meaning that when the demand for one increases, the demand for the other also tends to increase. A classic example of complementary goods is peanut butter and jelly; if more people buy peanut butter, many will also buy jelly to enjoy with it. This relationship happens because these items enhance each other's use and experience. On the other hand, substitute goods are those that can replace each other, like butter and margarine, where an increase in the price of one might lead more people to buy the other instead. Understanding these relationships helps businesses and consumers make better choices based on how products interact with one another.

Detailed Explanation

Bread and butter are complements because they are often used together. Other options are incorrect because Many people think coffee and tea are complements because they are both drinks; Printers and ink cartridges seem like complements since you need ink for a printer.

Key Concepts

complements
Topic

Substitutes and Complements in Economics

Difficulty

easy level question

Cognitive Level

understand

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