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 often choose between them as beverages with similar caffeine content and social consumption patterns. The other pairs are either complements (milk and sugar, sugar and tea) or unrelated goods.

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