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. You observe that the price of streaming movies is higher in the winter than in the summer. This would be explained by the fact that
A) demand for streaming movies is higher in the winter than in the summer.
B) the quantity demanded of streaming movies is higher in the winter than in the summer.
C) there are more streaming movies released in the winter than in the summer.
D) consumer income tends to fall in the winter and increase in the summer.
Correct Answer:
Verified
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