Which of following factors should be considered when assessing complements and substitutes?
A)Availability of close substitutes and/or complements
B)Price-value characteristics of substitutes/complements
C)Price elasticity of industry demand
D)All of the above
E)None of the above

Question

Quizplus · Accepted Answer

All three factors (availability of substitutes/complements, price-value characteristics, and price elasticity of demand) should be considered when assessing complements and substitutes. Availability of substitutes or complements can affect the demand for a particular product, and the price-value characteristics of substitutes or complements can affect how consumers view the value of a product. Additionally, the price elasticity of demand for an industry can influence how sensitive consumers are to price changes for both the product and its complements or substitutes. Thus, it is important to consider all three factors when evaluating the impact of complement and substitute goods on a product's demand.

Which of Following Factors Should Be Considered When Assessing Complements