The number of satellite dishes increased by 50 per cent when the average monthly price of cable television increased by 10 per cent. Assuming that other factors are held constant, satellite dishes and cable television are classified as:
A) complements.
B) unrelated goods.
C) substitutes.
D) social goods.

Question

Quizplus · Accepted Answer

Satellite dishes and cable television are substitutes because when the price of one goes up, the demand for the other increases. In this case, the increase in the price of cable television caused people to switch to satellite dishes, leading to a 50% increase in the number of satellite dishes.

The Number of Satellite Dishes Increased by 50 Per Cent