DVDs and DVD players are complements. An increase in the price of DVD players would cause which of the following in the market for DVDs?
A. The equilibrium price of DVDs would increase, and the equilibrium quantity would decrease.
B. The equilibrium price and quantity of DVDs would increase.
C. The equilibrium price of DVDs would decrease, and the equilibrium quantity would increase.
D. The equilibrium price and quantity of DVDs would decrease.
Answer: D
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A) the purchasing power of money has decreased. B) prices have risen. C) prices have not changed. D) prices have fallen.
Cigarette advertising on our nation's radio and television stations has been prohibited for more than the past three decades by federal law
What is curious about this law is that it came into being not just because of the lobbying efforts of American Medical Association but also by the tobacco industry. Use economic logic to explain this apparent paradox.
Regulation is guaranteed to be more efficient than a monopoly
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Which of the following was the result of Fannie Mae and Freddie Mac being both privately-owned and government-sponsored enterprises?
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