If DVD players and DVDs are complementary goods, an increase in the price of DVDs will, ceteris paribus,
A) Increase the quantity demanded of DVDs.
B) Increase the quantity demanded of DVD players.
C) Reduce the demand for DVD players.
D) Reduce the demand for DVDs.

Question

Quizplus · Accepted Answer

An increase in the price of DVDs will lead to a decrease in the demand for DVD players because they are complementary goods, meaning they are often used together.

If DVD Players and DVDs Are Complementary Goods, an Increase