Before the DVD,the VCR was a popular format for taping and replaying video.When the DVD was introduced,which of the following most accurately describes the long-run adjustment process in the VCR industry?
A) Costs increased, price increased, demand decreased, quantity decreased, profit decreased.
B) Demand increased, costs increased, price increased, quantity increased, profit decreased.
C) Demand decreased, quantity decreased, price decreased, profit decreased.
D) Demand decreased, price decreased, quantity decreased, profit decreased.

Question

Quizplus · Accepted Answer

C) accurately describes the long-run adjustment process in the VCR industry after the introduction of DVDs. As DVDs became more popular due to their superior quality and convenience, demand for VCRs decreased. This led to a decrease in the quantity of VCRs sold, a decrease in their price due to lower demand, and ultimately a decrease in profit for manufacturers and sellers of VCRs.

Before the DVD,the VCR Was a Popular Format for Taping