Ceteris paribus, what effect would an increase in the price of DVD players tend to have?
A) It would increase the demand for DVD players.
B) It would decrease the demand for DVD players.
C) It would increase the price of televisions, a complement to DVD players.
D) It would increase the demand for VCRs, a substitute for DVD players.

Question

Quizplus · Accepted Answer

An increase in the price of DVD players, ceteris paribus, would make substitutes such as VCRs more attractive to consumers, thereby increasing the demand for VCRs. This is because consumers looking for similar functionality at a lower price might switch to the substitute product.

Ceteris Paribus, What Effect Would an Increase in the Price