Refer to Scenario 3

question 144

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 eliminates a quota that reduced 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 increase.
• B) The price of plasma TVs and the rental price of DVDs would decrease.
• C) The price of plasma TVs would decrease and the rental price of DVDs would increase.
• D) The price of plasma TVs would increase and the rental price of DVDs would decrease.

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Definitions:

Strategic Repetition

A technique used in communication and advertising to reinforce a message or concept by repeating it in a deliberate manner.

Research Methods

Research methods are systematic strategies, techniques, or procedures employed to collect and analyze data in order to uncover new information or understand a topic better.

Topic Sentence

A sentence that expresses the main idea of the paragraph in which it appears, usually found at the beginning.

Main Idea

The central or most important thought or message of a text, speech, or conversation, around which the content is developed.