QQuestionAnatomy and Physiology
QuestionAnatomy and Physiology
Video Ezy is a movie rental store that has seen its revenues fall significantly over the past decade. Experts largely attribute the fall to a rise in online streaming services (such as Netflix) that provide a different form of access to movies.
1. Netflix is a substitute to Video Ezy.
2. The increased availability of a substitute has caused a left shift in demand for Video Ezy products.
3. A decrease in the price of Video Ezy rentals would result in a positive movement in demand.
Which of the above statements are true:
Only 1 is true.
Only 2 is true.
Both 1 and 2 are true.
Both 2 and 3 are true.
All three are true.
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Answer
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Step 1: Identify the true statements
To determine the accuracy of each statement, we need to analyze them one by one.
Step 2: Analyzing Statement 1
Netflix is indeed a substitute for Video Ezy, as it offers an alternative way to access movies without renting physical copies from Video Ezy. Therefore, Statement 1 is true.
Final Answer
Both Statements 1 and 2 are true.
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