Refer to Scenario 3

question 165

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.
-Refer to Scenario 3.1. The number of stores renting DVDs is reduced by 25%, reducing the number of DVDs available. Which of the following would occur?

• A) The rental price of DVDs would increase, and the price of plasma TVs and movie tickets would decrease.
• B) The rental price of DVDs would increase, but the price of plasma TVs and movie tickets would be unaffected.
• C) The rental price of DVDs and movie tickets would decrease, but the price of plasma TVs would increase.
• D) The rental price of DVDs and the price of movie tickets would increase, but the price of plasma TVs would decrease.

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Definitions:

High-Status Groups

High-status groups refer to social groups that are considered superior within a society due to certain attributes like wealth, power, or prestige.

Democratic Politics

A political system in which power is practiced directly by the people or through elected representatives, characterized by free and fair elections, rule of law, and protection of rights.

Market Economy

An economy in which the production and distribution of goods and services are determined by supply and demand, rather than state intervention.

Communist Party

A political organization advocating for the principles of communism, where property and resources are collectively owned.