If DVD players and DVDs are complementary goods,an increase in the price of DVDs will,ceteris paribus,
A)Increase the quantity demanded of DVDs.
B)Increase the quantity demanded of DVD players.
C)Reduce the demand for DVD players.

Question

Quizplus · Accepted Answer

DVDs and DVD players are complementary goods, which means they are typically used together. An increase in the price of DVDs will make it more expensive for consumers to purchase both DVDs and DVD players, leading to a reduction in demand for DVD players. This is because the increase in the price of DVDs will reduce the demand for DVDs, which then reduces demand for DVD players as well.

If DVD Players and DVDs Are Complementary Goods,an Increase in the Price