Comprehension
The quantity of a good that the consumer chooses can increase or decrease with the rise in the price of a related goods depending on whether the two goods are substitutes or complementary to each other. Goods which are consumed together are called complementary goods. Examples of goods which are complement to each other include tea and sugar, shoes and socks, pen and ink, etc. Since tea and sugar are used together, an increase in the price of sugar is likely to decrease the demand for tea and decrease in the price of sugar is likely to increase the demand for tea. Similar is the case with other complements. In general, the demand for a good moves in the opposite direction of the price of its complementary goods.
Question: 1
The goods which can be used in place of each other are called?
The goods which can be used in place of each other are called?
Updated On: Apr 2, 2026
- Normal goods
- Complementary goods
- Substitute goods
- Giffen goods
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The Correct Option is C
Solution and Explanation
The Correct Option is (C): Substitute goods
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Question: 2
The demand for a good moves in opposite direction if change in the price of its
The demand for a good moves in opposite direction if change in the price of its
Updated On: Apr 2, 2026
- Complementary goods
- Substitute goods
- Inferior goods
- Consumption goods
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The Correct Option is A
Solution and Explanation
The Correct Option is (A): Complementary goods
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Question: 3
If the price of coffee increases then consumption of tea also increases it implies that tea and coffee are
If the price of coffee increases then consumption of tea also increases it implies that tea and coffee are
Updated On: Apr 12, 2024
- Substitute good
- Giffen good
- Complementary good
- Perishable good
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The Correct Option is A
Solution and Explanation
The Correct Option is (A): Substitute good
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Question: 4
Car and petrol are the example of ______goods .
Car and petrol are the example of ______goods .
Updated On: Apr 2, 2026
- Normal goods
- Inferior goods
- Substitute goods
- Complementary goods.
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The Correct Option is D
Solution and Explanation
The Correct Option is (D): Complementary goods.
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Question: 5
Those goods which can be used together are called ______goods.
Those goods which can be used together are called ______goods.
Updated On: Apr 2, 2026
- Substitute goods
- Complementary goods
- Consumption goods
- Capital goods.
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The Correct Option is B
Solution and Explanation
The Correct Option is (B): Complementary goods
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