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Which of the following are possible examples of substitute goods?

a. right and left shoes
b. hot dogs and rolls
c. shampoo and conditioner
d. ice cream and sorbet

User GrovesNL
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1 Answer

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Final answer:

Ice cream and sorbet are examples of substitute goods since they can be consumed in place of each other. Changes in the price of substitute and complement goods affect the demand for a product like hamburgers in unpredictable ways, thus it's not certain what will happen to the demand without additional information.

Step-by-step explanation:

The possible examples of substitute goods are products that can be used in place of one another. Given the options:

  • Right and left shoes are not substitutes as they are used together.
  • Hot dogs and rolls are complements because they are generally used together.
  • Shampoo and conditioner are also complements, usually used together for hair care.
  • Ice cream and sorbet are substitutes since they can be consumed in place of each other as frozen desserts.

Now, considering the demand for hamburgers, if the price of a substitute good, such as hot dogs, increases, this could lead to an increase in the demand for hamburgers because consumers may switch from the more expensive hot dogs to the less expensive hamburgers. On the other hand, if the price of a complementary good, such as hamburger buns, also increases, this could reduce the demand for hamburgers because the overall cost to consume a hamburger with a bun would be higher.

Therefore, it's not certain what will happen to the demand for hamburgers without knowing the magnitude of the price changes and consumer preferences. A graph representing these changes would show the demand curve for hamburgers shifting to the right when the price of hot dogs increases, indicating a higher demand for hamburgers. However, when the price of hamburger buns increases, the demand curve for hamburgers might shift to the left, indicating a lower demand. The net effect on the demand curve for hamburgers depends on which effect is stronger.

User Alena
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