Which of the following would most likely decrease the current demand for DVD players?
a. an increase in consumer income
b. an increase in the prices of television sets, a complement for DVD players
c. an expectation that the price of DVD players would rise sharply in the near future
d. an increase in the price of VCRs, a substitute for DVD players
B
You might also like to view...
If you were a professor of economics explaining to your class the three primary tools of monetary policy used by the Fed, you would write on the chalk board
a. changes in the legal reserve requirement, changes in the discount rate, and changes in tax rates b. changes in the legal reserve requirement, changes in tax rates, and open market operations c. changes in tax rates, changes in the discount rate, and open market operations d. changes in the legal reserve requirement, open market operations, and moral suasion e. changes in the legal reserve requirement, changes in the discount rate, and open market operations
Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then the equilibrium price of a new DVD would
a. rise. b. fall. c. stay the same. d. could rise, fall, or remain unchanged.
Successful entrepreneurs
What will be an ideal response?
As long as the multiplier process is working, firms will meet additional demand without raising prices.
Answer the following statement true (T) or false (F)