Question

Statement (1): Taj Mahal Tea and Tata Tea are examples of substitute goods.

Statement (2): Printer and ink cartridges are examples of complementary goods.

Options

• Both the statements are true.

• Both the statements are false.

• Statement 1 is true and Statement 2 is false.

• Statement 2 is true and Statement 1 is false.

Answer 1

Both the statements are true.

Explanation:

• Statement (1): Taj Mahal Tea and Tata Tea are two different brands of the same commodity that perform the same purpose, making them ideal instances of substitute goods that may be used together.
• Statement (2): A printer cannot work without ink cartridges, and ink cartridges are useless without a printer; because they must be consumed in tandem to meet a single consumer requirement, they are ideal instances of complementary goods.