Question
Identify which of the following would generate a decrease in the market demand for e-book readers, which are a normal good.
I. An increase in the price of downloadable apps utilized to enhance the e-book reading experience, which are complements.
II. An increase in the number of consumers in the market for e-book readers.
III. A decrease in the price of tablet devices, which are substitutes.
IV. A reduction in the income of consumers of e-book readers.
Part 2
A.
Both I and IV.
B.
Only IV.
C.
I, III and IV.
D.
Both III and IV.
I. An increase in the price of downloadable apps utilized to enhance the e-book reading experience, which are complements.
II. An increase in the number of consumers in the market for e-book readers.
III. A decrease in the price of tablet devices, which are substitutes.
IV. A reduction in the income of consumers of e-book readers.
Part 2
A.
Both I and IV.
B.
Only IV.
C.
I, III and IV.
D.
Both III and IV.
Answers
GPT 3.5
The correct answer is D. Both III and IV.
c. is the answer
GPT 3.5
Apologies for the confusion. You are correct, the answer is C. I, III, and IV. Thank you for catching that mistake.