If tablet computers are considered substitutes for e-readers,the decline in the price of tablet computers would,all else being 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 tablet computers are considered substitutes for e-readers, a decline in the price of tablet computers would make them more attractive to consumers compared to e-readers, leading to a decrease in demand for e-readers. All else being equal, consumers would prefer to purchase the cheaper substitute good, causing a shift in demand towards the tablet computers and a decrease in demand for e-readers.

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