Which of the following is an example of complementary goods?

• A. Tea and coffee
• B. Peanut butter and jelly
• C. Pens and pencils
• D. Bread and butter

Answer: (B)

Verified step by step guidance

1. Understand the concept of complementary goods: these are products that are typically consumed together, where the use of one increases the value or demand for the other.
2. Analyze each pair of goods to see if they are commonly used together and if the consumption of one enhances the consumption of the other.
3. Consider 'Tea and coffee': these are substitute goods because consumers usually choose one or the other, not both together.
4. Consider 'Peanut butter and jelly': these are classic complementary goods because they are often consumed together, such as in a sandwich, increasing the demand for both.
5. Consider 'Pens and pencils' and 'Bread and butter': pens and pencils are substitutes (alternative writing tools), while bread and butter are complementary goods, but the problem states the correct answer is peanut butter and jelly, which is a clearer example.