Question

State whether the following pairs of goods are complements or substitutes

a. racquetball courts and handball courts

B. Handballs and handball courts are

C. Ice cream and ice cones are

D. Shampoo and conditioner

Answer 1

a.

Answer: substitutes

Both are basically indoor games court. The arena of playing of these games is almost the same. Therefore, one court substitutes to other court.

b.

Answer: complements

Handballs are used to play in the handball court. If there is no such court, there will be no use of handballs. Therefore, these are complements.

c.

Answer: complements

Cones are used to place ice creams. If the price of ice cream increases, the demand of cone decreases. Therefore, these are complements.

d.

Answer: substitutes

In case of certain hairs conditioner could be used instead of shampoo for cleaning and shining hairs. Therefore, these become substitutes.