Suppose the demand for books goes down when the price of video games goes down. We can say that these two goods are

A) complements.
B) substitutes.
C) unrelated goods.
D) perfect substitutes.

Question

Suppose the demand for books goes down when the price of video games goes down. We can say that these two goods areA)  complements.B)  substitutes.C)  unrelated goods.D)  perfect substitutes.

KARANDEEP Bakshi · Accepted Answer

Final Answer : B, Explanation :  Books and video games are substitutes because a decrease in the price of video games leads to a decrease in the demand for books, indicating that consumers may switch from buying books to buying video games.

Suppose the demand for books goes down when the price of video games goes down. We can say that these two goods are

A) complements.
B) substitutes.
C) unrelated goods.
D) perfect substitutes.

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Learning Objectives

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