Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

The price of petrol falls from 100 Rs to 80 Rs resulting in increase in demand of vehicles from 10000 to 20000.
What type of goods are petrol and vehicles?

Options:

substitute goods

complementary goods

normal goods

luxury good

Correct Answer:

complementary goods

Explanation:

Petrol and vehicles are complementary goods. Complementary goods are those goods who adds to the value of the other commodity. So, a car is incomplete without petrol in it. Thus, we can say that they are complementary goods. Few more examples include: pen and ink, bat and ball etc.