After a Fall in the Price of Songs Downloaded from the Internet,Phil

question 118

Multiple Choice

After a fall in the price of songs downloaded from the Internet,Phil purchases fewer CDs and buys a new MP₃ player.For Phil,

• A)MP₃ players and CDs are complements.
• B)CDs,downloaded music and MP₃ players are all substitutes.
• C)CDs and downloaded songs are substitutes;downloaded songs and MP₃ players are complements.
• D)MP₃ players,CDs and CD players all are complements.

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Definitions:

Marginal Benefit

The extra pleasure or benefit derived from acquiring or making another unit of a product or service.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good or service, including both private costs and externalities.

Garbage Disposed

The act of getting rid of waste materials generated from personal or commercial activities.

Payment Plan

An agreement between a borrower and a lender that outlines the terms for repaying a loan, typically including the loan amount, interest rate, and repayment schedule.