Consider the markets for DVDs, TV screens, and tickets at movie theaters. a. For each pair, identify

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Consider the markets for DVDs, TV screens, and tickets at movie theaters.

a. For each pair, identify whether they are complements or substitutes:

• DVDs and TV screens

• DVDs and movie tickets

• TV screens and movie tickets

b. Suppose a technological advance reduces the cost of manufacturing TV screens. Draw a diagram to show what happens in the market for TV screens.

c. Draw two more diagrams to show how the change in the market for TV screens affects the markets for DVDs and movie tickets.

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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Question Posted: Dec 14, 2012 06:47 AM

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Consider the markets for DVDs, TV screens, and tickets at movie theaters. a. For each pair, identify

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a DVDs and TV screens are likely to be complements because you cannot watch a DVD without a televisi...View the full answer

Principles of economics

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