Online Music Streaming Services, Such as Spotify, Have Decimated the Market

question 143

Multiple Choice

Online music streaming services, such as Spotify, have decimated the market for CDs. Based on this information, you can conclude that streaming services:

• A) and CDs are complementary goods.
• B) and CDs are substitutes.
• C) has a higher income elasticity than CDs.
• D) has a higher price elasticity than CDs.

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Definitions:

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specific time period.

Stock Price

The cost at which a share of a company's stock can be bought or sold in the market.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a set price within a specific period.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a certain period.