Scientists in Charge of Creating Music CDs Created a CD

question 4

Multiple Choice

Scientists in charge of creating music CDs created a CD that stored 18 hours of music. Unfortunately,it was unmarketable. The scientists gave up on the project because they created the CD to be the same size as LP records and didn't think about making it smaller. The scientists creating a CD the size of an LP is an example of

• A) being under paid for the amount of research they were having to do.
• B) being stuck in a mental rut.
• C) not getting out of the idea generation stage of development.
• D) lack of creativity.
• E) not knowing what consumers wanted.

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Definitions:

Price Elastic

Describes a situation where the demand for a product changes significantly in response to a change in the product's price.

Price Inelastic

A situation where the demand for a product does not change significantly in response to price changes.

Price Volatile

Characterizes a market or commodity whose price is subject to rapid, unexpected, and often large changes.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.