Increase in the price of coffee is expected to cause increase in demand for tea. In which of the following categories can the goods be categorized into?

Substitute goods

The correct answer is option 1: Substitute goods

Substitute goods are those goods which can be used in place of each other. For example: tea and coffee, sugar and jaggery, pen and pencil etc. Whereas, complementary goods are those goods which add to the value of the other good. For example: car and petrol, computer and keyboard etc.