The price of video cassette recorders (VCRs) remains constant, but the market demand curve for VCRs shifts leftward as consumers shift to DVDs and other video technologies
What happens to the consumer surplus in this market as the demand curve shifts? A) Increases
B) Decreases
C) Remains the same
D) We do not have enough information to answer this question.
B
You might also like to view...
If current unemployment is close to the natural rate of unemployment, the level of real GDP is likely to be close to the level of potential output
Indicate whether the statement is true or false
One drawback of the patent system is that firms must disclose to the public information about the product or process
Indicate whether the statement is true or false
House A has an ocean view and House B does not. In all other respects, the two houses are the same. The market price of house A is $2,800,000; the market price of house B is $2,600,000. The ocean view is therefore valued at
A) $200,000. B) $1,950,000. C) -$700,000. D) $2,700,000.
If the cross price elasticity of two goods is -3.5, then
A) these two products are relatively elastic substitutes. B) these two products are relatively inelastic substitutes. C) these two products are relatively elastic complements. D) these two products are relatively inelastic complements.