Answer to Question #120120 in Economics for Rahat Hasan

Question

Which of the following pairs of goods, are substitutes and which are complements? Explain.
1.Insulation and heating oil.
2.Hot dogs and mustard.
3.Television sets and videocassette recorder.
4.Rice and potatoes.

Answer 1

1. Insulation and heating oil are complements.

2. Hot dogs and mustard are complements.

3.Television sets and videocassette recorder are complements.

4.Rice and potatoes are substitutes.