1.)

Consider the market for film streaming services, TV sets, and movie tickets.

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

Pairs of Goods and Services	Complements	Substitutes
Film streaming services and TV sets
Film streaming services and movie tickets
TV sets and movie tickets

Suppose a technological advance reduces the cost of manufacturing TV sets.

Show the effect of this change on the market for TV screens.

O Supply Demand Supply Price of TV Screens Demand Quantity of TV ScreensO Supply Demand O Supply Price of Film Streaming Services Demand Quantity of Film Streaming ServicesPrice of Movie Tickets Suppl /\\ Quantity of Movie Tickets Demand Supply Graph Input Tool 100 Market for Teapots 90 Price 30 (Dollars per teapot) 80 Supply Quantity 500 Quantity Supplied 210 70 Demanded (Teapots) (Teapots) 60 50 PRICE (Dollars per teapot) 40 Demand 30 20 10 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Teapots)Scenario 1 10 CO O Supply Co Demand 7 O 6 Supply PRICE (Dollars per pen) 5 4 Demand 2 0 0 1 2 3 4 5 6 7 8 9 10 QUANTITY (Millions of pens)Scenario 2 10 O 8 Supply Demand 6 Supply PRICE (Dollars per pen) 5 4 3 2 Demand 0 1 2 3 4 5 6 7 8 9 10 QUANTITY (Millions of pens)