Asked by Matthew Eskender on Apr 24, 2024
Verified
Demand for Barbara Streisand CDs is equal to Qs P2.50sI1.80P0.60c, where Qs is the number of CDs, Ps is the price of a Streisand CD, I is per capita income, and Pc is the price of a Karen Carpenter CD.Streisand and Carpenter CDs
A) are inferior goods.
B) are substitutes.
C) are complements.
D) have diminishing returns to scale.
E) are not as good as the original 8-track tapes.
Barbara Streisand CDs
Physical compact discs containing music recorded by the American singer, actress, and filmmaker Barbara Streisand.
Complements
Goods that are often consumed together, such that an increase in demand for one leads to an increase in demand for the other.
Substitutes
Goods or services that can replace each other in use or consumption, such that an increase in the price of one leads to an increase in demand for the other.
- Understand the concept of complementary and substitute goods in consumer preferences.
Verified Answer
Learning Objectives
- Understand the concept of complementary and substitute goods in consumer preferences.
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