What Deteriorates the Quickest

question 5

Multiple Choice

What deteriorates the quickest?

• A) Multiple generations of video recorded on an analog VTR
• B) Multiple generations of video recorded on a digital VTR
• C) MPEG-2 video
• D) MPEG-4 video
• E) Video recorded to a hard drive

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Definitions:

Willingness to Pay

The maximum amount an individual is prepared to spend for a good or service, reflecting the value they assign to it.

Consumer Surplus

The difference as marked by what consumers are prepared to spend on a good or service versus the actual payment made.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Externalities

Costs or benefits that affect a party who did not choose to incur that cost or benefit.