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Multiple Choice
Which of the following cannot be an example of a pair of substitute goods?
A
Butter and margarine
B
Apple juice and orange juice
C
Printers and ink cartridges
D
Coffee and tea
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 well.
Step 2: Analyze each pair to determine if they are substitutes. For example, butter and margarine are substitutes because consumers can use one instead of the other.
Step 3: Consider apple juice and orange juice. These are also substitutes since they serve a similar purpose as fruit juices and can replace each other in consumption.
Step 4: Examine printers and ink cartridges. These are not substitutes but rather complementary goods because printers require ink cartridges to function; an increase in the price of one does not increase demand for the other.
Step 5: Look at coffee and tea. These are classic examples of substitute goods because consumers often choose one over the other based on price or preference.