ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Similarly, margarine is also used to create beautiful frostings for expensive cakes or consumed with bread. 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.

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: -Complementary goods are goods/services that are typically used together, for example keyboard and computers, tennis balls and rackets, and milk and cookies. When the price of a certain good decreases, the demand for its complementary good will increase.

Detailed explanation-4: -A substitute good is a good that serves the same purpose as another good for consumers. A complementary good is a good that adds value to another good when they are consumed together. Pepsi and Coke are a typical example of substitute goods, whereas fries and ketchup may be considered complements of each other.

Detailed explanation-5: -Answer and Explanation: The answer is E) toothbrushes and toothpaste. Complementary goods are used jointly. One example is the use of toothpaste and toothbrushes, which are used together.