Asked by Kaylan Summey on Jul 12, 2024
Verified
When the price for Blu-ray players dropped, the demand for DVD players went down, based on this, DVD players and Blu-ray players are
A) complementary products.
B) outsourced products.
C) substitute products.
D) interchangeable products.
E) superior products.
Substitute Products
Goods or services that can be used in place of another, offering consumers alternatives based on preference, price, or availability.
Complementary Products
Goods or services that are used together, enhancing the value or utility of each other.
Blu-ray Players
Devices designed to play Blu-ray discs, which offer high-definition video and high-quality audio.
- Understand the concepts of complementary, substitute, and interchangeable products, and how their demand is affected by price changes.
Verified Answer
RT
Raphael TaiwoJul 15, 2024
Final Answer :
C
Explanation :
Since the decrease in price of Blu-ray players caused a decrease in demand for DVD players, it means that they are substitute products. When the price of one product (Blu-ray player) decreases, consumers switch to it over the other product (DVD player).
Learning Objectives
- Understand the concepts of complementary, substitute, and interchangeable products, and how their demand is affected by price changes.