Refer to Scenario 3

question 37

Multiple Choice

Refer to Scenario 3.1 below to answer the question(s) that follow.
SCENARIO 3.1
-Streaming movies and movies shown in theaters are substitutes.
-Streaming movies and OLED TVs are complements.
-OLED TVs and movies shown in theaters are normal goods.
-People watch streaming movies more often in the winter than in the summer.
-Refer to Scenario 3.1. You observe that the price of streaming movies is higher in the winter than in the summer. This would be explained by the fact that

• A) demand for streaming movies is higher in the winter than in the summer.
• B) the quantity demanded of streaming movies is higher in the winter than in the summer.
• C) there are more streaming movies released in the winter than in the summer.
• D) consumer income tends to fall in the winter and increase in the summer.

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Definitions:

Net Operating Income

A company's total profit from its operations, excluding non-operating income and expenses, such as taxes and interest.

Total Sales Dollars

The complete amount of revenue generated by a company from sales activities within a specific period, measured in currency.

Contribution Format

A type of income statement format that separates fixed and variable costs, emphasizing the contribution margin.

Income Statement

A financial report detailing a company's income, costs, and gains for a given time frame.