When the price of compact disc players decreases, the demand for compact discs rises while the demand for cassette tapes decreases. What does this imply about the relationship between compact disc players, compact discs, and cassette tapes?
What will be an ideal response?
Compact disc players and compact discs must be complements. Compact disc players and cassette tapes must be substitutes.
Economics
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In a Bertrand model, if one firm has a dominant strategy, its best-response function
A) does not exist. B) is identical to its rival. C) is a constant. D) is to respond to its rival's price increase with a price decrease.
Economics
Under adaptive expectations, the expected current value of a variable does not depend on a recently observed value of the variable.
Answer the following statement true (T) or false (F)
Economics