Suppose the Price of Compact Disks (CDs)increases,other Things Equal

question 146

Multiple Choice

Suppose the price of compact disks (CDs) increases,other things equal.Which of these is most likely to occur in the market for DVDs,a substitute?

• A)The demand for DVDs is likely to decrease.
• B)The demand for DVDs is likely to increase.
• C)The quantity of DVDs demanded is likely to increase.
• D)A decrease in the quantity of DVDs demanded is likely to decrease.
• E)A decrease in the quantity of DVDs supplied is likely to decrease.

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Definitions:

Finished Goods Account

An account used to track the value of inventory that has been completed and is ready for sale.

Product Cost Information

Data about the total cost incurred to produce a product, including materials, labor, and overhead.

Inventory

A company's stock of goods or materials that are held for sale or used in production.

Rate Increases

An upward adjustment in prices, charges, or interest rates, typically within a business or economic context.