Advertisements
Advertisements
Question
Identity the pair of goods which are substitutes of each other:
Options
Coffee and sugar
Tea and coffee
Bread and butter
Pen and ink
Solution
Tea and coffee
Explanation:
Tea and coffee are substitutes for each other because they can be used in place of one another to satisfy the same need or want. If the price of tea increases, people might buy more coffee, and vice versa. The other pairs listed (coffee and sugar, bread and butter, pen and ink) are complementary goods, meaning they are used together.
APPEARS IN
RELATED QUESTIONS
Expansion of demand and Increase in demand.
The demand for salt is _____________.
Distinguish between Individual demand and Market demand.
Explain with reason whether you 'agree' or 'disagree' with the following statement:
There are many types of demands.
Match the following Group 'A' with Group 'B':
| Group 'A' | Group 'B' |
| (a) Electricity | (1) Joint demand |
| (b) Perfectly elastic demand | (2) Lord Keynes |
| (c) Aggregate supply | (3) Prof. Pigou |
| (d) Propensity to consume | (4) Fixed deposits |
| (e) Higher interest rate | (5) Composite demand |
| (6) Demand curve parallel to 'X' axis | |
| (7) Natural resources |
Define or Explain the concept
Perfectly elastic demand
Define or explain the following concept:
Increase in demand
Write short note:
Giffen's paradox
Write short note:
Concept of demand
Electricity is an example of ______ demand.
