A news story states that "Videotapes lose their appeal as consumers switch to DVDs for movies." In a competitive market for the purchase of videotapes of movies, this situation would lead to a(n):
a. Decrease in the price of videotapes and increase in the quantity sold
b. Decrease in the price of videotapes and the quantity sold
c. Increase in the price of videotapes and decrease in the quantity sold
d. Increase in the price of videotapes and the quantity sold
b. Decrease in the price of videotapes and the quantity sold
You might also like to view...
Refer to Figure 18.4. With free trade, what is the equilibrium price of gloves in Duckland?
A) $0 B) $8 C) $9 D) $11
Based on the data in the above table, gross domestic product equals
A) $2,190. B) $2,840. C) $2,465. D) $2,750.
Which of the following is an infant industry argument in favor of restrictions on foreign trade? a. Foreign producers must be prevented from exporting their goods below cost of production
b. Domestic workers must be protected from lower wages paid in foreign countries. c. The nation's security demands we ensure an adequate domestic supply of certain strategic goods. d. Do unto others as they do unto you. e. Industries in the early stages of development must be protected from competing with the more mature producers.
Price discrimination allows a monopolist to make higher profits
a. True b. False Indicate whether the statement is true or false