Multiple choice

Which of the following pair of goods are close substitutes?

  1. Milk and Sugar

  2. Sugar and Tea

  3. Tea and Coffee

  4. Coffee and Biscuits
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Tea and coffee are close substitutes because consumers can easily switch between them based on price, taste preference, or availability. Milk and sugar are complements (used together), while biscuits complement coffee. Sugar and tea are also complementary goods.

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