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Author Question: Refer to Scenario 3.1 below to answer the question(s) that follow. SCENARIO 3.1: Rented DVDs and ... (Read 212 times)

roselinechinyere27m

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Reply #10 on: Apr 19, 2019

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. The number of stores renting DVDs is reduced by 25%, reducing the number of DVDs available. Which of the following would occur?


◦ The rental price of DVDs would increase, and the price of plasma TVs and movie tickets would decrease.
◦ The rental price of DVDs would increase, but the price of plasma TVs and movie tickets would be unaffected.
◦ The rental price of DVDs and movie tickets would decrease, but the price of plasma TVs would increase.
◦ The rental price of DVDs and the price of movie tickets would increase, but the price of plasma TVs would decrease.
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lcapri7

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Reply #11 on: Apr 19, 2019
The rental price of DVDs and the price of movie tickets would increase, but the price of plasma TVs would decrease.


aabwk4

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Reply #12 on: Apr 19, 2019

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 eliminates a quota that reduced 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 increase.
◦ 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.


Joy Chen

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Reply #13 on: Apr 19, 2019
The price of plasma TVs would decrease and the rental price of DVDs would increase.


aabwk4

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Reply #14 on: Apr 19, 2019
Thank you!


Joy Chen

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Reply #15 on: Apr 19, 2019
Always glad to help...


vHAUNG6011

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Reply #16 on: Apr 19, 2019

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. In response to complaints from movie theater owners, the government removes an entertainment tax on movie tickets, but there are no additional taxes levied on rented DVDs. This would lead to


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


ryrychapman11

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Reply #17 on: Apr 19, 2019
a decrease in the price of movie tickets and the rental price of DVDs.


Alainaaa8

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Reply #18 on: Apr 19, 2019

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. If the number of stores renting DVDs increases by 10%, which of the following would occur?


◦ The rental price of DVDs would increase and the price of plasma TVs and movie tickets would decrease.
◦ The rental price of DVDs and the price of movie tickets would decrease, but the price of plasma TVs would increase.
◦ The rental price of DVDs and the price of movie tickets would increase, but the price of plasma TVs would decrease.
◦ The rental price of DVDs would increase, but the price of plasma TVs and movie tickets would be unaffected.


krakiolit

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Reply #19 on: Apr 19, 2019
The rental price of DVDs and the price of movie tickets would decrease, but the price of plasma TVs would increase.


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