Rented Movies and DVDs shown in theatres are substitutes. Rented DVDs and Plasma TVs are complements. Plasma TVs and movies shown in theatre are Normal goods. Most Plasma TVs sold in Pakistan are imported from Malaysia. If the Pakistan Government reduces the number of Plasma TVs that can be imported into Pakistan, ceteris paribus, what would happen to the price of Plasma TVs and rented DVDs?

Why is the type of product sold in an industry an important characteristic? a firm that can differentiate its product from that of rivals may be able to charge a higher price for a superior product. a firm that sells intangible goods is usually considered a monopoly. service industries cannot differentiate their products, which makes it easy for new firms to enter the industry. expensive products are usually sold by perfectly competitive firms.