Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:
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?
Options:
substitute goods
complementary goods
both of them
none of them
Correct Answer:
substitute goods
Explanation:
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.