Positive Technological Change in the Production of LCD Televisions Caused

question 46

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:

Empirically

Refers to knowledge or information gained through observation, experience, or experiment rather than through theory or pure logic.

Reaction Formation

Disguising unconscious content by turning it into its opposite.

Repression

A psychological defense mechanism where unpleasant thoughts, feelings, or desires are excluded from conscious awareness.

Denial

A psychological defense mechanism where a person refuses to accept reality or facts, effectively protecting themselves from uncomfortable or painful emotions.