If you are considering buying either an Apple iPhone or a Samsung Galaxy,and you choose the Samsung only because the price is lower,then you consider
A)the iPhone and the Galaxy to be complements.
B)the iPhone and the Galaxy to be substitutes.
C)the iPhone to be a normal good and the Galaxy to be an inferior good.
D)the iPhone to be an inferior good and Galaxy to be a normal good.

Question

Quizplus · Accepted Answer

If the decision is based solely on price, then the iPhone and Samsung Galaxy are considered substitutes, as they serve the same function and can be interchangeable in the eyes of the consumer. Complements would be products that are typically purchased together, such as a phone case and a phone. The terms normal and inferior goods refer to how the quantity demanded changes in relation to income, and are not applicable in this scenario.

If You Are Considering Buying Either an Apple IPhone or a Samsung