Refer to Scenario 3

question 68

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. The number of sites that stream movies is reduced by 25%, reducing the number of streaming movies available. Which of the following would occur?

• A) The price of streaming movies would increase, and the price of OLED TVs and movie tickets would decrease.
• B) The price of streaming movies would increase, but the price of OLED TVs and movie tickets would be unaffected.
• C) The price of streaming movies and the price of movie tickets would decrease, but the price of OLED TVs would increase.
• D) The price of streaming movies and the price of movie tickets would increase, but the price of OLED TVs would decrease.

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Definitions:

Article 9

A provision within the Uniform Commercial Code (UCC) that governs secured transactions involving personal property, creating a framework for securing debts and financing statements.

Equipment

Tangible property or tools that are used in the process of producing goods or providing services.

Bankruptcy Trustee

An appointed individual responsible for managing the estate of a debtor during bankruptcy proceedings, including assets distribution to creditors.

Security Interest

An enforceable legal claim or lien on collateral that has been pledged, usually to obtain a loan, ensuring the right to seize said collateral if the loan is not repaid.