Online music streaming services, such as Spotify, have decimated the market for CDs. Based on this information, you can conclude that streaming services:
A) and CDs are complementary goods.
B) and CDs are substitutes.
C) has a higher income elasticity than CDs.
D) has a higher price elasticity than CDs.

Question

Quizplus · Accepted Answer

Streaming services and CDs are substitutes because the increase in the use of streaming services has led to a decrease in the demand for CDs.

Online Music Streaming Services, Such as Spotify, Have Decimated the Market