All of the following pairs of goods are substitutes except

Question

Part 2
A.
we observe the price of automobiles decreases and the demand for public transit decreases.
B.
we observe the price of bacon increases and the demand for eggs decreases.
C.
we observe the price of coffee increases and the demand for tea increases.
D.
we observe the price of tennis racquets decreases and the demand for golf clubs decreases.

Answer 1

C.

Answer 2

why

Answer 3

The pair of goods mentioned in option C, which is coffee and tea, are actually complements rather than substitutes. This is because coffee and tea are often considered alternative choices for consumers when they want to satisfy their caffeine cravings. Therefore, when the price of coffee increases, people may switch to drinking tea instead, which would lead to an increase in the demand for tea.

Answer 4

All of the following pairs of goods are complements except
Part 4
A.
we observe the price of tennis racquets increases and the demand for tennis shoes decreases.
B.
we observe the price of bacon decreases and the demand for sausage increases.
C.
we observe the price of automobiles decreases and the demand for tires increases.
D.
we observe the price of coffee decreases and the demand for tea decreases.

Answer 5

D.

In all the other options (A, B, and C), we observe that as the price of one good increases, the demand for the other good decreases. This indicates that the goods are complements, satisfying the condition for complementarity. However, in option D, the price of coffee decreases, and the demand for tea also decreases. This implies that coffee and tea are substitutes rather than complements.