Which of the following pairs of goods most likely represents substitutes?

• A. Smartphones and phone cases
• B. Tea and coffee
• C. Bread and butter
• D. Printers and ink cartridges

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of substitute goods. Substitute goods are products that can replace each other in consumption, meaning if the price of one increases, the demand for the other tends to increase as consumers switch to the alternative.
2. Step 2: Analyze each pair of goods to determine if they are substitutes or complements. Complements are goods that are used together, so an increase in the price of one decreases the demand for the other.
3. Step 3: Consider 'Smartphones and phone cases'. These are typically complements because phone cases are used with smartphones, not substitutes.
4. Step 4: Consider 'Tea and coffee'. These are classic examples of substitute goods because consumers often switch between them based on price, preference, or availability.
5. Step 5: Consider 'Bread and butter' and 'Printers and ink cartridges'. Both pairs are complements since bread and butter are consumed together, and printers require ink cartridges to function.