Positive Technological Change in the Production of LCD Televisions Caused

question 38

Multiple Choice

Positive technological change in the production of LCD televisions caused the price of LCD televisions to fall.Holding everything else constant, how would this affect the market for Blu-ray players (a complement to LCD televisions) ?

• A)The supply of Blu-ray players would increase and the equilibrium price of Blu-ray players would decrease.
• B)The demand for Blu-ray players would increase and the equilibrium price of Blu-ray players would increase.
• C)The demand for Blu-ray players would decrease because consumers could afford to buy fewer LCD televisions and Blu-ray players.
• D)The demand for Blu-ray players would increase and the equilibrium price of Blu-ray players would decrease.

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Definitions:

Remedies

Legal means through which a right is enforced or a violation of a right is compensated.

Fraud

Intentional deception made for personal gain or to damage another individual.

Punitive Damages

Punitive damages are monetary compensations awarded in lawsuits, over and above the actual damages, intended to punish the defendant for egregious misconduct and deter future similar acts.

Innocent Misrepresentation

A false statement made by someone who believes it to be true, leading another to enter into a contract or agreement under false pretenses without the intent to deceive.