Which of the following pairs are examples of substitutes?
a. popcorn and soda
b. automobile and bicycles
c. boats and fishing tackle
d. wine and cheese
Please explain how you're using the word "substitutes" here.
B. automobile and bicycles are because if your gas goes up in price you are more likely to use your bike. The other three pairs are used together, so they are compliments.
To determine which pairs are examples of substitutes, we need to understand the concept of substitutes. Substitutes are products or goods that can be used in place of each other to satisfy a similar want or need. If the price of one product increases, the demand for its substitute is likely to rise as consumers switch to the cheaper alternative.
Now, let's evaluate each pair:
a. popcorn and soda: Popcorn and soda are commonly consumed together but they do not necessarily serve as substitutes for each other. They are more likely to be considered complementary goods as they are often consumed together.
b. automobile and bicycles: Automobiles and bicycles can both be used as a means of transportation. If the price of automobiles increases, some people may choose to buy a bicycle instead, making them substitutes. Therefore, this pair can be considered examples of substitutes.
c. boats and fishing tackle: Boats and fishing tackle serve different purposes. Boats are used for transportation on water, while fishing tackle is used for fishing. They are not typically used interchangeably, so this pair is not an example of substitutes.
d. wine and cheese: Wine and cheese are often consumed together, but they are not substitutes for each other. They fulfill different desires and are not typically used interchangeably.
Based on the analysis, the pair that can be considered examples of substitutes is b. automobile and bicycles.