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Chapter 1 Unit II questions

For Chapter 1 Unit II questions Click Nature & Scope of Business Economics
QUESTION
Q4) Which of the following pairs of goods is an example of substitutes?

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Correct

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Solution:
Substitutes are goods that can be used in place of each other. When the price of one good rises, the demand for its substitute increases.
Tea and coffee are substitutes for each other. When the price of tea rises, people may switch to coffee instead.
So, the answer is (b) Tea and coffee.
Correct option is (b)