Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Butter and Margarine
B
Tea and Coffee
C
Shoes and Socks
D
Gasoline and Public Transport
Understanding the Answer
Let's break down why this is correct
Answer
Substitutes are goods that can replace each other when prices change or when a consumer's preferences shift. For example, if the price of coffee goes up, many people might choose to buy tea instead, as both drinks serve a similar purpose. This means coffee and tea are substitutes because they satisfy the same need for a warm beverage. When consumers see a price increase in one good, they often look for a similar option that is cheaper, leading to a switch in their purchasing choices. Understanding substitutes helps businesses and economists predict how changes in price can affect consumer behavior.
Detailed Explanation
Tea and coffee are substitutes. Other options are incorrect because Some might think these are substitutes because they can both spread on bread; People might confuse these as substitutes since they are worn together.
Key Concepts
substitute goods
goods classification
Topic
Substitutes and Complements in Economics
Difficulty
medium level question
Cognitive Level
understand
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