After a fall in the price of songs downloaded from the Internet,Phil purchases fewer CDs and buys a new MP₃ player.For Phil,

Question

Quizplus · Accepted Answer

The scenario suggests that the fall in price of songs downloaded from the Internet resulted in a decrease in Phil's CD purchases, indicating that CDs and downloaded songs are substitutes. At the same time, the scenario also suggests that Phil buys a new MP3 player, indicating that downloaded songs and MP3 players are complements. Therefore, CDs and downloaded songs are substitutes; downloaded songs and MP3 players are complements.

After a Fall in the Price of Songs Downloaded from the Internet,Phil