Refer to Scenario 3

question 36

Multiple Choice

Refer to Scenario 3.1 below to answer the questions that follow.
SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods. People watch rented DVDs more often in the winter than in the summer.
-Refer to Scenario 3.1. You observe that the rental price for DVDs is higher in the winter than in the summer. This would be explained by the fact that

• A) demand for rented DVDs is higher in the winter than in the summer.
• B) the quantity demanded of rented DVDs is higher in the winter than in the summer.
• C) there are more DVDs released into the rental market in the winter than in the summer.
• D) consumer income tends to fall in the winter and increase in the summer.

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Definitions:

Shipped Goods

Items or products that have been transported from one location to another, typically through a commercial carrier.

Inspects

The action of examining something or someone closely to ensure compliance with standards.

Obligation

A commitment or duty to do something or to refrain from doing something.

Merchant

A person or company involved in the wholesale or retail trade of goods or services.