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. The number of stores renting DVDs is reduced by 25%, reducing the number of DVDs available. Which of the following would occur?

A) The rental price of DVDs would increase, and the price of plasma TVs and movie tickets would decrease.
B) The rental price of DVDs would increase, but the price of plasma TVs and movie tickets would be unaffected.
C) The rental price of DVDs and movie tickets would decrease, but the price of plasma TVs would increase.
D) The rental price of DVDs and the price of movie tickets would increase, but the price of plasma TVs would decrease.