Nintendo Wii's controllers use two AA batteries. When the price of Nintendo Wii fell from $199 to $149, the demand for AA batteries:
A) increased since they are a complement good to the Nintendo Wii.
B) decreased since they are a complement good to the Nintendo Wii.
C) increased since they are a substitute good to the Nintendo Wii.
D) decreased since they are a substitute good to the Nintendo Wii.

Question

Quizplus · Accepted Answer

When the price of a complement good decreases, the demand for the other good increases. In this case, AA batteries are a complement good to the Nintendo Wii, so when the price of the Wii fell, the demand for AA batteries increased.

Nintendo Wii's Controllers Use Two AA Batteries