Question
8. For each of the following shifts in the demand curve and associated price change of a complement or substitute item, explain whether the price
8. For each of the following shifts in the demand curve and associated price change of a complement or substitute item, explain whether the price of the complement or substitute must have increased or a decreased.
a.A rise in the demand for a dashboard GPS device follows a change in the price of automobiles, which are complements.
b.A fall in the demand for e-book readers follows a change in the price of e-books, which are complements.
c.A rise in the demand for tablet devices follows a change in the price of ultrathin laptop computers, which are substitutes.
d.A fall in the demand for physical books follows a change in the price of e-books, which are substitutes.
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