Refer to Scenario 3.1 below to answer the question(s) that ...

[waynest]

Refer to Scenario 3.1 below to answer the question(s) that follow.



SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods. People watch rented DVDs more often in the winter than in the summer.





Refer to Scenario 3.1. Most plasma TVs sold in the United States are imported from Japan. If the United States government reduces the number of plasma TVs that can be imported into the United States, 
ceteris paribus, what would happen?

◦ The price of plasma TVs and the rental price of DVDs would decrease.
◦ The price of plasma TVs would decrease, and the rental price of DVDs would increase.
◦ The price of plasma TVs would increase, and the rental price of DVDs would decrease.
◦ The price of plasma TVs and the rental price of DVDs would increase.

[bobsmith]

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[waynest]

Thanks

[bobsmith]

Welcome

[panfilo]

Refer to Scenario 3.1 below to answer the question(s) that follow.



SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods. People watch rented DVDs more often in the winter than in the summer.





Refer to Scenario 3.1. To raise additional revenues, the government imposes an entertainment tax on movie tickets, but there are no new additional taxes levied on rented DVDs. This would lead to

◦ an increase in the price of movie tickets, but no change in the rental price of DVDs.
◦ an increase in the price of movie tickets and the rental price of DVDs.
◦ an increase in the price of a movie ticket and a decrease in the rental price of DVDs.
◦ no change in the price of a movie ticket and an increase in the rental price of DVDs.

[jazzlynnnnn]

an increase in the price of movie tickets and the rental price of DVDs.

[rachel9]

Refer to Scenario 3.1 below to answer the question(s) that follow.



SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods. People watch rented DVDs more often in the winter than in the summer.





Refer to Scenario 3.1. You observe that the rental price for DVDs is higher in the winter than in the summer. This would be explained by the fact that

◦ demand for rented DVDs is higher in the winter than in the summer.
◦ the quantity demanded of rented DVDs is higher in the winter than in the summer.
◦ there are more DVDs released into the rental market in the winter than in the summer.
◦ consumer income tends to fall in the winter and increase in the summer.

[briezy]

demand for rented DVDs is higher in the winter than in the summer.

[rachel9]

TY

[briezy]

You're welcome