Question

Classify the following pairs of goods and services. Bottled water and health club memberships are​ _______. A. substitutes in production B. complements in production C. substitutes D. complements     French fries and baked potatoes are​ _______. A. complements for consumers and complements in production for producers B. substitutes for consumers and substitutes in production for producers C. substitutes for consumers but not substitutes in production for producers D. complements for consumers but not complements in production for producers     Leather boots and leather shoes are​ _______. A. substitutes in production for producers B. complements for consumers C. complements in production for producers D. complements for consumers but not substitutes in production for producers Hybrids and SUVs are​ _______. A. substitutes or substitutes in production B. complements but not substitutes in production C. complements or complements in production D. substitutes but not substitutes in production     Diet coke and regular coke are​ _______. A. substitutes or substitutes in production B. complements or complements in production C. complements but not complements in production D. substitutes but not substitutes in production     ​Low-fat milk and cream are​ _______.

Answer 1

Bottled water and health club memberships are complements in consumption as the people in health clubs drink more of bottled water

French fries and baked potatoes are​ substitutes or substitutes in production for producers The producers decides to produce any of them with the given resources.

Leather boots and leather shoes are​ substitutes in production for producers. The producers decides to produce any of them with the given resources depending on demand from consumers.

Hybrids and SUVs are​ substitutes or substitutes in production as the two poses a choice for producers. The producers decides to produce any of them with the given resources.

Diet coke and regular coke are​ substitutes or substitutes in production. The producers decides to produce any of them with the given resources and with given demand from consumers.

Low-fat milk and cream are​ complements in production as the cream is driven out from the milk and thus produces the low fat milk.