Question

The examples of substitute goods are

• A. Tea and sugar
• B. Shoes and socks
• C. Pen and ink
• D. Tea and coffee

Hint:

Substitutes compete (like Coke and Pepsi). Complements go together (like cars and petrol).

Answer 1

The Correct Option is D

Substitute goods are pairs of goods that can be used in place of each other to satisfy a particular want. If the price of one goes up, the demand for the other increases.

Tea and coffee are classic substitutes. If the price of coffee rises, people will drink more tea.
Tea and sugar, pen and ink, and shoes and socks are examples of complementary goods, which are used together.