ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Bread and butter are complements since they are consumed together. The cross-price elasticity of demand for complement goods is negative.

Detailed explanation-3: -Petrol and diesel as a pair of goods is an example of substitutes and other pairs are examples of complementary goods.

Detailed explanation-4: -b. Bread and butter are complementary goods because they are often consumed together (you don’t often see people eating butter without bread).

Detailed explanation-5: -A complementary good is a product or service that provides value to another product or service. In other words, they are two things that the customer utilises in conjunction with one another. Cereal and milk, for example, or a DVD and a DVD player.