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.
B
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If the government makes a good illegal and then imposes stiffer penalties on illegal drug buyers than on sellers, the price of the good ________ and the quantity ________
A) falls; increases B) rises; decreases C) falls; decreases D) does not change; decreases
In the short-run, an appreciation in the value of the U.S. dollar will tend to cause ________
A) a decrease in the level of income and higher inflation B) an increase in the level of income and higher inflation C) an increase in the level of income and lower inflation D) a decrease in the level of income and lower inflation