ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -This makes butter and margarine substitutes for each other as consumers use them to satisfy the same purpose. Both of these items act as complements with bread but replace one another. Therefore, option a is the correct answer.

Detailed explanation-2: -Butter and margarine are used as spreads on the bread. So, either of them can be used. If there is an increase in the price of margarine, individuals will substitute away from margarine towards butter. These commodities are thus substitutes.

Detailed explanation-3: -Bread and butter, car and petrol are examples of complementary goods. These goods have joint demand as when the demand of one commodity rises, the demand for another commodity also rises.

Detailed explanation-4: -Cars and petrol are complementary goods since when the price of the petrol increases then the demand for cars fall. Since the price of the petrol and demand for the cars are inversely related, they are complementary goods.

Detailed explanation-5: -Those goods that are consumed together are called complementary goods. Example: Tea and sugar. If the price of sugar increases, then it will lead to a decrease in the demand for tea. If the price of tea increases, then it will reduce the demand for sugar.