What Happens to the Demand for Xbox Games If the Price

question 481

Multiple Choice

What happens to the demand for Xbox games if the price of an Xbox falls?

• A) The demand for Xboxes decreases because the price of a substitute falls.
• B) The demand for Xboxes increases because the price of a complement falls.
• C) The demand for Xboxes decreases because the price of a complement falls.
• D) The demand for Xboxes remains unchanged.

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Definitions:

Market Economies

Economic systems in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses.

Line Segment ST

A part of a line that is bounded by two distinct end points, labeled S and T.

Unemployed Resources

Economic resources, including labor, that are not currently in use or employed in the production process.

Macroeconomic Equilibrium

A state in which aggregate supply equals aggregate demand, meaning the economy is at a balance between the total quantity of goods supplied and the total quantity of goods demanded.