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.

Question

Quizplus · Accepted Answer

The equilibrium price could change in any direction because cheaper DVD players and improved production technology increase supply, while expectations of falling prices decrease demand. The net effect on price depends on the relative magnitudes of these shifts.

Consider the Market for New DVDs