Answer to Question #229846 in Accounting for fian

Question

Classify the following pairs of goods and services 

as substitutes in production, complements in 

production, or neither. 

a. Lumber and sawdust 

b. Condominiums and bungalows 

c. Cheeseburger and fries 

d. Cars and gasoline 

e. Cappuccino and latte

Answer 1

a) Lumber and sawdust are complement i.e they will be used together by the users.

b) Condominiums and bungalows are substitutes i.e they will not used together by the users.

c) Cheeseburger and fries are substitutes i.e they will not used together by the users.

d) Cars and gasoline are complement i.e they will used together by the users.

e) Cappuccino and Latte are substitutes i.e they will not used together by the users.