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. Most OLED TVs sold in the United States are imported from Asia. If the United States government reduces the number of OLED TVs that can be imported into the United States, ceteris paribus, what would happen?

Question

Quizplus · Accepted Answer

The reduction in the number of imported OLED TVs would decrease the supply of OLED TVs in the United States, leading to an increase in their price. As OLED TVs are complements to streaming movies, the increase in the price of OLED TVs would make streaming movies less attractive, leading to a decrease in their demand and a decrease in their price.