Asked by Tareq Hamad on May 09, 2024
Verified
Which two goods are most likely substitutes in consumption?
A) loaves of bread and sticks of butter
B) loaves of bread and toasters
C) loaves of bread and hamburger buns
D) loaves of bread and gasoline
Substitutes
Products or services that serve as alternatives to each other, such that when the price of one increases, the demand for its counterpart also rises.
Loaves of Bread
This is a quantifiable term for bread, indicating specific units of bread as a product commonly used for consumption.
Hamburger Buns
A type of bread specifically designed to hold a hamburger patty and its accompanying ingredients, serving as an essential component of a hamburger.
- Become aware of the distinctions between normal goods, inferior goods, substitute commodities, and complementaries.
Verified Answer
KB
Kathleen BennettMay 10, 2024
Final Answer :
C
Explanation :
Loaves of bread and hamburger buns are most likely substitutes in consumption since they are both used as bread products for sandwiches or similar meals. Loaves of bread and sticks of butter are typically used for different purposes (bread vs. cooking), loaves of bread and toasters are not substitutes at all (toasters are used to prepare bread, not eaten like bread), and loaves of bread and gasoline are completely unrelated goods.
Learning Objectives
- Become aware of the distinctions between normal goods, inferior goods, substitute commodities, and complementaries.