Refer to Scenario 3

question 72

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. Most plasma TVs sold in the United States are imported from Japan. If the United States government reduces the number of plasma TVs that can be imported into the United States, ceteris paribus, what would happen?

• A) The price of plasma TVs and the rental price of DVDs would decrease.
• B) The price of plasma TVs would decrease, and the rental price of DVDs would increase.
• C) The price of plasma TVs would increase, and the rental price of DVDs would decrease.
• D) The price of plasma TVs and the rental price of DVDs would increase.

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Definitions:

Verbal Memory

The ability to remember and recall words, phrases, and narratives, an important aspect of human memory functioning.

Egocentrism

A cognitive trait where an individual has difficulty understanding that other people have their own perspectives and feelings that are different from their own.

Dispositional Factors

Internal factors such as personality traits and temperament that influence an individual's behavior across different situations.

Preoperational Stage

A developmental stage in Piaget's theory, occurring from ages 2 to 7, where children are beginning to develop logical thought but are not yet capable of concrete reasoning.