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:

Somatic Nervous System

Part of the peripheral nervous system that oversees voluntary movements of the body by transmitting sensory and motor signals to and from the central nervous system.

Parasympathetic Nervous

Part of the autonomic nervous system responsible for relaxation, regeneration, and feeding activities, often termed as the "rest and digest" system.

Sympathetic Nervous

Part of the autonomic nervous system that prepares the body for fight or flight responses by accelerating heart rate, dilating pupils, and other physiological changes.

Somatic Nervous

A component of the peripheral nervous system associated with the voluntary control of body movements via skeletal muscles.