Question

Health conscious people prefer the usage of honey over sugar in the management of diseases. How are honey and sugar related?

Options

• Complementary goods

• Substitute goods

• Unrelated goods

• Joint goods

Answer 1

Substitute goods

Explanation:

Honey and sugar are substitute goods since they fulfill the same purpose as sweeteners and can be used interchangeably by consumers. When health-conscious people choose to treat ailments by replacing sugar with honey, an increase in sugar’s perceived health dangers immediately raises market demand for honey.