Refer to Scenario 3

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 reduces 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 decrease.
B) The price of plasma TVs would decrease, and the rental price of DVDs would increase.
C) The price of plasma TVs would increase, and the rental price of DVDs would decrease.
D) The price of plasma TVs and the rental price of DVDs would increase.