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متابعة

Which of the following is not good for CMA 694 1-14?

A - Margarine and butter. B - Gas and motor oil. C - VCRs and video cassettes. D - Razors and razor blades.

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تم إضافة السؤال من قبل محمد الباجوري , Senior ERP Consultant & ERP Project Manager , XERVON GmbH
تاريخ النشر: 2013/06/25
Jay Fresnido
من قبل Jay Fresnido , Total Rewards Analyst (Assistant Manager Level) , Al Futtaim Group

Answer (A - Margarine and butter) is correct.
Goods or services are complements if the price change of one has an inverse relationship to the demand for the other.
For example, when the price of one good increases, the demand for a complementary good decreases.
Margarine and butter, however, are substitutes and their relationship is direct.
When the price of one good increases, demand for a substitute good also increases.

Jagdish Acharya
من قبل Jagdish Acharya , Chief Technical Advisor , Rotomag Motors and Controls

A

Aadil Kunhalavi
من قبل Aadil Kunhalavi , Business Development Consultant , Superpreneurs Strategy Consultants LLP

A - Margarine and butter

Murtaza Ali Merchant
من قبل Murtaza Ali Merchant , FINANCIAL ACCOUNTANT CUM ADMINISTRATOR , Bin Salman Group

(A) would be correct answer because they are not complementary products.

Kokab Rahman
من قبل Kokab Rahman , Managing Director, Head of Business Development , Radeya Business Services http://www.radeya.biz

Margarine and butter are not complimentary goods.
They are substitutes.
If the price of butter increases then demand for margarine increases because people will use it in place of butter.
Complimentary goods are those that are used together, such as VCRs and video cassettes.
Another example is Coffee and sugar.
An increase in coffee intake increases demand for sugar.

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