1. Consider the markets for Streaming Services, Cable TV and Pizza a. Complete the following sentences: Streaming Services and Cable TV are (Complements/Substitutes), but Cable TV and Pizza are (Complements/Substitutes) b. If the price of Streaming________ (increase/decrease), the price of Cable TV will____________ (increase/decrease), c. If the price of Streaming_____ (increase/decrease the price of Pizza will (increase/decrease) are

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter6: Elasticities
Section: Chapter Questions
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1. Consider the markets for Streaming Services, Cable TV and Pizza
a. Complete the following sentences: Streaming Services and Cable TV are
are____________(Complements/Substitutes), but Cable TV and Pizza are
_(Complements/Substitutes)
b. If the price of Streaming________ (increase/decrease), the price of Cable TV
will
(increase/decrease),
c. If the price of Streaming_____ (increase/decrease the price of Pizza will
(increase/decrease)
d. Because Streaming and Cable TV are
close
(Complements/Substitutes), the Demand for Streaming is
(Elastic/Inelastic)
Transcribed Image Text:1. Consider the markets for Streaming Services, Cable TV and Pizza a. Complete the following sentences: Streaming Services and Cable TV are are____________(Complements/Substitutes), but Cable TV and Pizza are _(Complements/Substitutes) b. If the price of Streaming________ (increase/decrease), the price of Cable TV will (increase/decrease), c. If the price of Streaming_____ (increase/decrease the price of Pizza will (increase/decrease) d. Because Streaming and Cable TV are close (Complements/Substitutes), the Demand for Streaming is (Elastic/Inelastic)
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