After the Price of Smartphone Apps Falls, Justin Buys Fewer

question 303

Multiple Choice

After the price of smartphone apps falls, Justin buys fewer flash drives but he buys a new smartphone. For Justin

• A) smartphone apps and flash drives are complements, and smartphone apps and smartphones are substitutes.
• B) smartphone apps, flash drives, and smartphones are all complements.
• C) smartphone apps and flash drives are substitutes, and smartphone apps and smartphones are complements.
• D) smartphone apps, flash drives, and smartphones are not all complements.

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Definitions:

Number of Firms

It refers to the total count of enterprises operating within a certain market or industry.

Industry

A sector of the economy that produces a related set of goods or services.

Marginal Cost

The expense associated with the production of an extra unit of a product or service.

Marijuana

Refers to the dried leaves, flowers, stems, and seeds from the Cannabis sativa or Cannabis indica plant, used for medicinal or recreational purposes.