Feedback to Learner
The introductory paragraphs are good. So are the discussions of price as a determinant of demand and income. You are not understanding how to analysis substitutes. I think you are saying that if the price of cable or satellite goes up, demand for these products will fall. If so, you need to remember that when the price of a product changes, demand NEVER changes. Only quantities demanded will change. When looking at the price of a substitute, if it increases, demand for the product will increase. So if the price of cable, for example, increases, consumers will buy less cable and buy Roku instead. The demand for Roku will increase. I don’t believe there are any complements for this product. A complement is something the consumers have to buy with the product. Your discussion is really about accessories and these aren’t determinants of demand. I don’t believe that the number of consumers in the market will affect the decision to buy the product. What you still need to do is come up with at least one specific characteristic of the determine demand for this product. What do people who buy it have in common?