When the price of DVD players drops, the demand for DVDs is likely to ______.

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for your Marketing SmartBook Test with our interactive quiz. Use flashcards and multiple-choice questions, complete with hints and explanations. Ace your exam effortlessly!

Multiple Choice

When the price of DVD players drops, the demand for DVDs is likely to ______.

Explanation:
Complementary goods: DVDs and DVD players are used together. When the price of DVD players falls, more people buy players, and those buyers typically want to use the players with DVDs, so demand for DVDs rises. The cheaper players expand the overall use of the product pair, pulling up DVD purchases. The idea that demand would fall or stay unchanged doesn’t fit this complementary relationship, and calling it unpredictable ignores the clear cross‑price effect between these two goods.

Complementary goods: DVDs and DVD players are used together. When the price of DVD players falls, more people buy players, and those buyers typically want to use the players with DVDs, so demand for DVDs rises. The cheaper players expand the overall use of the product pair, pulling up DVD purchases. The idea that demand would fall or stay unchanged doesn’t fit this complementary relationship, and calling it unpredictable ignores the clear cross‑price effect between these two goods.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy