Refer to Scenario 3.1 below to answer the question(s) that follow.SCENARIO 3.1-Streaming movies and movies shown in theaters are substitutes. -Streaming movies and OLED TVs are complements. -OLED TVs and movies shown in theaters are normal goods. -People watch streaming movies more often in the winter than in the summer.Refer to Scenario 3.1. The number of sites that stream movies is reduced by 25%, reducing the number of streaming movies available. Which of the following would occur?
A. The price of streaming movies and the price of movie tickets would decrease, but the price of OLED TVs would increase.
B. The price of streaming movies and the price of movie tickets would increase, but the price of OLED TVs would decrease.
C. The price of streaming movies would increase, but the price of OLED TVs and movie tickets would be unaffected.
D. The price of streaming movies would increase, and the price of OLED TVs and movie tickets would decrease.
Answer: B
You might also like to view...
Which of the following is an explicit cost in Jim's business venture?
A) the salary Jim could have earned at another job B) the interest Jim does not earn because he invested his savings in his business C) the wages Jim pays his workers D) Jim's normal profit E) Answers A, B, and D are correct.
One of the shortcomings of the activist approach is the difficulty in correctly identifying the economy's potential output level and the natural rate of unemployment
Indicate whether the statement is true or false
Suppose that a foreign monopolist supplies the entire domestic market (there is no domestic production). The home country then applies a 5% tariff on imports from the foreign monopolist. How will the tariff affect the price in the home market?
a. It will increase by more than 5%. b. It will increase by 5%. c. It will increase by less than 5%. d. It will not change.
Measuring the impact of the protection on the U.S. economy and on Harley-Davidson:
a. is very clear—it was a success. b. is very clear—it was a failure. c. is not as black and white as the numbers might show, but saving a profitable company at a low cost has some merit for the U.S. economy. d. should take into consideration that Harley-Davidson was a private firm with private stockholders. Most economists disagree with government efforts to save it from bankruptcy.