Suppose that in 2009, 4 million plasma TVs were purchased at $1,600 each, while in 2010, 3 million plasma TVs were purchased at $1,350 each. What might have caused this change?

Question

Quizplus · Accepted Answer

When the price of a substitute good (LCD TVs) falls, consumers may switch to buying more of the substitute, leading to a decrease in demand for plasma TVs, which explains the decrease in quantity sold from 2009 to 2010.

Suppose That in 2009, 4 Million Plasma TVs Were Purchased