Over the Last Few Years,demand for DVDs Has Increased,but Their

question 27

Multiple Choice

Over the last few years,demand for DVDs has increased,but their equilibrium price has fallen.Which of the following,if true,best explains this situation?

• A)The quantity supplied of DVDs has decreased during this period.
• B)There has been a shortage of DVDs during this period.
• C)The supply of DVDs decreased more than the increase in demand for DVDs.
• D)The demand for DVDs has increased more than the decrease in supply of DVDs.
• E)The supply of DVDs increased more than the increase in demand for DVDs.

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Definitions:

Expansionary Fiscal Policy

Government policy that involves increasing spending, decreasing taxes, or both to stimulate economic growth.

Demand Stimulus

Economic policies or measures aimed at increasing consumer demand to drive economic growth.

Budget Deficits

The situation where a government's expenditures exceed its revenues over a particular accounting period, leading to borrowing or debt accumulation.

Regulatory Policies

Rules or directives formulated by a governing body to regulate activities within specific areas or industries for public benefit.