Related to the Economics in Practice on page 55: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods. Electronic textbooks and traditional, hard copy textbooks are substitute products. If the price of electronic textbooks for the Kindle decreases,

Question

Quizplus · Accepted Answer

If the price of electronic textbooks for the Kindle decreases, demand for the Kindle is likely to increase as consumers will be able to access electronic textbooks at a lower cost than before. As such, demand for electronic textbooks will also increase as the price decreases, and the convenience of the Kindle may attract some consumers away from traditional hard copy textbooks, leading to a decrease in demand for those products. Therefore, the most likely outcome is that demand for the Kindle and electronic textbooks increases, while demand for traditional hard copy textbooks decreases. Therefore, choice D is the most accurate answer.

Related to the Economics in Practice on Page 55: the Amazon