Blank DVDs and Prerecorded DVDs Are Substitutes in Production

question 424

Multiple Choice

Blank DVDs and prerecorded DVDs are substitutes in production. An increase in the price of a blank DVD will lead to

• A) an increase in the supply of prerecorded DVDs.
• B) a decrease in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs.
• C) a decrease in the supply of prerecorded DVDs.
• D) an increase in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs.