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Question
Which of these pairs of goods can be treated complementary to each others?
Which of these pairs of goods can be treated complementary to each others?
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Solution
The correct option is A Tea and Sugar
This question
explains complementary goods : A complementary good is a good
whose use is related to the use of an associated or paired good. Two goods (A and B) are complementary if using more of good A requires the use of more of good B. If the price of one good falls and people buy more
of it, they will usually buy more of the complementary good also, whether or
not its price also falls. Similarly, if the price of one good rises and reduces
its demand, it may reduce the demand for the paired or complementary good as
well. Therefore tea & sugar are complementary to each other.
This question explains complementary goods : A complementary good is a good whose use is related to the use of an associated or paired good. Two goods (A and B) are complementary if using more of good A requires the use of more of good B. If the price of one good falls and people buy more of it, they will usually buy more of the complementary good also, whether or not its price also falls. Similarly, if the price of one good rises and reduces its demand, it may reduce the demand for the paired or complementary good as well. Therefore tea & sugar are complementary to each other.
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