Which of the following pairs of goods are considered substitutes in microeconomics?

• A. Left shoe and right shoe
• B. Coffee and sugar
• C. Printer and ink cartridge
• D. Butter and margarine

Answer: (D)

Verified step by step guidance

1. Understand the definition 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.
2. Analyze each pair of goods to see if they fulfill the substitute condition: For example, left shoe and right shoe are complementary because they are used together, not substitutes.
3. Consider coffee and sugar: These are typically complementary goods since sugar is often consumed with coffee, so they are not substitutes.
4. Look at printer and ink cartridge: These are also complementary goods because a printer requires ink cartridges to function, so they are not substitutes.
5. Butter and margarine are classic examples of substitute goods because they serve similar purposes (e.g., as spreads or in cooking), so if the price of butter rises, consumers may buy more margarine instead.