If people demand fewer Netflix subscriptions when the price of Hulu subscriptions falls, then Netflix and Hulu are:
A)not related.
B)substitutes.
C)complements.
D)inferior goods.

Question

Quizplus · Accepted Answer

Netflix and Hulu are substitutes because they are competing for the same market share of streaming video subscriptions. When the price of Hulu falls, consumers will be more likely to choose Hulu over Netflix, leading to a decrease in demand for Netflix subscriptions.

If People Demand Fewer Netflix Subscriptions When the Price of Hulu