- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Topics in Demand and Supply Analysis
- Subject 2. Elasticities of Demand
CFA Practice Question
Which of the following linked products is an example of substitute goods?
B. Fruit juice, soft drinks
C. Compact discs, record players
D. Cigarettes, beer
A. Tires, automobiles
B. Fruit juice, soft drinks
C. Compact discs, record players
D. Cigarettes, beer
Correct Answer: B
Fruit juice and soft drinks are substitute goods while the others are complementary goods.
User Contributed Comments 5
| User | Comment |
|---|---|
| Nathan | C is not a pair of complementary goods. Compact discs and record players aren't compatible. They have weak substition relationship. |
| gill15 | Agree with Nathan. Also dont think beer and smokes are compliments unless its a given your a smoker already. I dont smoke so regardless of how cheap beer gets(Free) im not going to smoke. If I were paid I would smoke them though. What's that relationship? |
| jejasin | Yeah I thought it was C |
| Shaan23 | Gill. Thats hilarious. That relationship is called poorism. |
| 812hanna | Cigarettes and beer are totally substitutes if you live a stressful life and need one or the other to get away from it! |