Business, 14.04.2020 17:27 unkn03n78

1. Consider the markets for DVD movies, TV screens and movie tickets.

a. For each of the indicated pairs, please identify if the goods are complementary or substitutes:

1) DVD’s and TV screens.
2) DVD’s and movie tickets.
3) TV screens and movie tickets.

b. Suppose a technological advance reduces the cost of producing TV screens, what happens in the TV screen market?

c. How the change in the TV screen market affects:

1) the DVD’s market?
2) the movie ticket market?

Answers: 2

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1. Consider the markets for DVD movies, TV screens and movie tickets.

a. For each of th...

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