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Refer to Scenario 3

question 236

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. If the number of stores renting DVDs increases by 10%, which of the following would occur?


Definitions:

Land

Real estate or property, minus buildings and equipment, that is considered a fixed asset on a company's balance sheet.

Retained Earnings

The portion of a company's profits that is kept or retained rather than distributed to shareholders or used to pay dividends.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs.

Dividend

A part of a company's profits paid out to its shareholders, often as cash or extra shares.

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