ExpertEasy1 markMultiple Choice
AQA GCSE · Question 09 · How markets work
Which of the following are most likely to be substitutes for each other?
Which of the following are most likely to be substitutes for each other?
Answer options:
A.
Books and tablet computers
B.
Cars and petrol
C.
Coffee and sugar
D.
Torches and batteries
How to approach this question
Understand the definitions of substitute and complementary goods. Substitutes are goods that can be used in place of each other. Complements are goods that are used together. Evaluate each pair of goods to determine their relationship.
Full Answer
A.Books and tablet computers✓ Correct
The correct answer is A. Books and tablet computers are substitutes because they both serve a similar purpose (reading), and a consumer might choose one over the other.
In economics, substitute goods are two goods that a consumer perceives as similar or comparable, so that having more of one good causes the consumer to desire less of the other good. Books and tablet computers (e-readers) both satisfy the desire to read. In contrast, complementary goods are used in conjunction with each other, like cars and petrol.
Common mistakes
Confusing substitutes with complements. It's important to think about how the goods are used in relation to each other.
Practice the full AQA GCSE Economics Paper 1
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