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?

Question

Quizplus · Accepted Answer

An increase in the number of sites streaming movies would likely lead to more competition among streaming services, potentially lowering the price of streaming movies. Since streaming movies and OLED TVs are complements, a decrease in the price of streaming could increase the demand for OLED TVs, potentially raising their price. As streaming movies and movies shown in theaters are substitutes, a decrease in the price of streaming could decrease the demand for movie tickets, potentially lowering their price.