Over the last few years, demand for DVDs has increased, and yet their equilibrium price has fallen. Which of the following best explains this situation?
a. When the price falls, the quantity supplied increases.
b. There has been a shortage of DVDs.
c. The supply of DVDs must have decreased.
d. The demand curve for DVDs slopes upward, so an increase in demand leads to a lower price.
e. The supply of DVDs must have increased more than the demand for DVDs increased.
E
You might also like to view...
The law of supply states that
a. as prices increase, quantity supplied decreases. b. price changes are always in the same direction as supply changes. c. a change in price causes a change in supply. d. price and quantity supplied are positively or directly related.
Limits to self-interested payoff maximization that have been studied by behavioral economists include
a. limited cognitive ability. b. limited willpower. c. limits to self interest. d. all of the above.
In order to raise the rate of economic growth we would need to
A. increase the level of capital. B. reduce the level of labor. C. spend more on military goods. D. spend more on consumer goods.
Farming in poor countries is considered to be:
A. cost intensive. B. labor intensive. C. capital intensive. D. production intensive.