Assuming DVDs and DVD Players Are Complements, the Effect of an Increase

question 124

Multiple Choice

Assuming DVDs and DVD players are complements, the effect of an increase in the price of DVD players on the market for DVDs is a(n) :

• A) downward movement along the demand curve for DVDs.
• B) upward movement along the demand curve for DVDs.
• C) rightward shift in the demand curve for DVDs.
• D) leftward shift in the demand curve for DVDs.

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Definitions:

Total Asset Turnover

Total asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; it indicates how well a company can convert its assets into revenue.

Return on Total Assets

A financial ratio that measures a company's profitability in relation to its total assets, indicating how effectively a company uses its assets to generate profit.

Semiannual Interest Payment

A finance term referring to the practice of making interest payments twice a year on a loan or bond.

Bonds

Debt instruments signifying an investment made by an investor in the form of a loan to either a corporation or a government entity.