Solved

Refer to Scenario 3

Question 84

Multiple Choice

Refer to Scenario 3.1 below to answer the questions that follow.
SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods. People watch rented DVDs more often in the winter than in the summer.
-Related to the Economics in Practice on page 50: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods. Electronic textbooks and traditional, hard copy textbooks are substitute products. If the price of traditional, hard-copy textbooks increases,


A) demand for traditional, hard-copy textbooks decreases and demand for electronic textbooks increases.
B) the quantity of traditional, hard-copy textbooks demanded decreases and demand for electronic textbooks increases.
C) the quantity of electronic textbooks demanded increases and demand for the Kindle increases.
D) the quantity of electronic textbooks demanded increases and demand for traditional, hard-copy textbooks decreases.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents