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2 September, 07:27

Consider the market for film streaming services, tv screens, and tickets at movie theaters. for each pair, identify whether they are complements or substitutes: pairs of goods and services complements substitutes film streaming and tv screens film streaming and movie tickets tv screens and movie tickets suppose a technological advance reduces the cost of manufacturing tv screens.

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  1. 2 September, 08:46
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    Film streaming and tv screens: Compliments (if you are watching more netflix, hulu, etc you will care more about having a good tv to watch on)

    Film streaming and movie tickets: Substitutes (you will either watch netflix or go to the movies, not both at the same time)

    TV screens and movie tickets: Substitutes (if you are going to the movies, it doesn't matter what kind of TV you have)
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