Taken together, iPod and iTunes are ________.
A) substitute goods
B) complementary goods
C) competitive goods
D) monopolistic goods
E) intangible goods
B) complementary goods
Explanation: B) Products or services that go with each other and are consumed together, such as the iPod and iTunes, are considered complementary goods. The demand for iTunes is great as long as consumers are buying and using iPods and other portable media devices. These two products do not substitute for or compete with one another. Apple, their manufacturer, is successful in the market, but is not a monopoly, since there are substitute produces that consumers may choose to purchase.
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