Related to the Economics in Practice on P

question 189

Multiple Choice

Related to the Economics in Practice on p. 50: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods. Electronic textbooks and traditional, hard-copy textbooks are substitute products. If the price of the Kindle decreases,

• A) demand for the Kindle increases and demand for traditional, hard-copy textbooks decreases.
• B) the quantity of Kindles demanded increases and demand for electronic textbooks increases.
• C) demand for the Kindle increases and the quantity of electronic textbooks demanded increases.
• D) the quantity of Kindles demanded increases and the quantity of electronic textbooks demanded increases.

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Definitions:

Primary Storage

The main storage of a computer where data is stored temporarily for quick access by the processor.

Volatile

Characterized by or subject to rapid or unexpected change, often used to describe financial markets or memory storage that requires power to maintain stored information.

Technology

The application of scientific knowledge for practical purposes, especially in industry, through the use of machinery, software, and techniques.

Strategic Advantage

an edge that an organization gains over its competitors through strategies such as cost leadership, differentiation, or rapid response to market changes.