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. If the number of sites streaming movies increases by 10%, 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 would increase and the price of OLED TVs and movie tickets 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 and the price of movie tickets would increase, but the price of OLED TVs would decrease.
Answer: A
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A substantial reduction in the rate of inflation is called:
A. disinflation B. inflation inertia C. hyperinflation D. inflation shock
If the marginal cost for Dinky's Donuts to advertise one additional day each week in the local newspaper is $200, then Dinky's Donuts should advertize that additional day
A) until the marginal benefit the company receives reaches zero. B) as long as the marginal benefit the company receives each week is just equal to or greater than $200. C) as long as the weekly marginal cost does not rise. D) only if the marginal benefit the company receives each week is greater than $200 plus an acceptable profit margin.
When examining the financial status of households, wealth is
A) synonymous with income. B) a flow variable whereas income is a stock variable. C) a stock variable and includes both tangible assets and human capital. D) not as important as income because wealth does not change over time.
Average variable costs equal
A) total variable costs divided by marginal costs. B) total variable costs divided by output. C) the change in marginal costs from producing another unit of output. D) output divided by the change in total costs.