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. 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 streaming movies. This would lead to
A. a decrease in the price of a movie ticket and an increase in the price of streaming movies.
B. a decrease in the price of movie tickets, but no change in the price of streaming movies.
C. a decrease in the price of movie tickets and the price of streaming movies.
D. no change in the price of a movie ticket and a decrease in the price of streaming movies.
Answer: C
You might also like to view...
Suppose a competitive firm pays a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If hiring another worker would increase output by five units per hour, then to maximize profits the firm should
A) hire the additional worker. B) lay off some of its workers. C) not change the number of workers it currently hires. D) There is not enough information to answer the question.
What does the demand curve for British pounds tell us?
a. The quantity of pounds people will want to sell at each different exchange rate b. The quantity of pounds people will want to buy at each level of output c. The quantity of pounds people will want to buy at each different exchange rate d. The quantity of pounds people will want to sell in each different time period e. The quantity of pounds people will want to buy at each different interest rate.
What is a multilateral trade pact? Discuss the first one that was formed and what its impact has been.
What will be an ideal response?
How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?
What will be an ideal response?