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Blank DVDs and Prerecorded DVDs Are Substitutes in Production

Question 176

Multiple Choice

Blank DVDs and prerecorded DVDs are substitutes in production. An increase in the price of a blank DVD will lead to


A) an increase in the supply of prerecorded DVDs.
B) a decrease in the supply of prerecorded DVDs.
C) an increase in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs.
D) a decrease in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs.

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