Refer to Scenario 3

question 191

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.

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Definitions:

Multicultural Experiences

Experiences that involve or are related to multiple cultures, aiding in the understanding and appreciation of cultural diversity.

Business Perspective

Viewing issues or strategies from a standpoint that considers the commercial implications and objectives of an organization.

Unconscious Prejudice

Refers to biases or attitudes towards others that individuals are not consciously aware of but can influence their behavior and decisions.

Court Rulings

Judicial decisions made by a court following a litigation process.