Refer to Scenario 3

question 191

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.
-Related to the Economics in Practice on page 50: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods. Electronic textbooks and traditional, hard copy textbooks are substitute products. If the price of traditional, hard-copy textbooks increases,

• A) demand for traditional, hard-copy textbooks decreases and demand for electronic textbooks increases.
• B) the quantity of traditional, hard-copy textbooks demanded decreases and demand for electronic textbooks increases.
• C) the quantity of electronic textbooks demanded increases and demand for the Kindle increases.
• D) the quantity of electronic textbooks demanded increases and demand for traditional, hard-copy textbooks decreases.