Question : Coffee and tea are examples of ___ goods.
Option 1: Complementary goods
Option 2: Substitute goods
Option 3: Inferior goods
Option 4: Normal goods
Correct Answer: Substitute goods
Solution : Coffee and tea are examples of substitute goods. Substitute goods or substitutes are at least two products that can be used by the same consumers for the same purpose. In the eyes of the consumer, substitute goods are identical, similar, or comparable to another product. Hence option b is the correct answer.
Question : In which of the following cases does the law of demand fail?
Question : Bread, Milk, Readymade clothes, T.V., etc. are examples of _______ goods
Question : Buildings, machinery, tools, and equipment are a few examples of the capital goods that firms employ to produce their goods and services.
Question : The concept of cross elasticity of demand is useful for businesses to determine:
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