If tablet computers are considered substitutes for e-readers, the decline in the price of tablet computers would, all else equal,
A) increase the demand for e-readers.
B) decrease the demand for e-readers.
C) increase the quantity demanded for e-readers.
D) decrease the quantity demanded for e-readers.

Question

Quizplus · Accepted Answer

As the price of substitute goods (tablet computers) decrease, the demand for e-readers will decrease as consumers would prefer purchasing the cheaper substitute. This would lead to a decrease in the demand for e-readers.

If Tablet Computers Are Considered Substitutes for E-Readers, the Decline