Since Their Introduction, Prices of Blu-Ray Players Have Fallen and the Quantity

question 21

Multiple Choice

Since their introduction, prices of Blu-ray players have fallen and the quantity purchased has increased. This statement

• A) suggests that the supply of Blu-ray players has increased.
• B) suggests that the demand for Blu-ray players has increased.
• C) constitutes an exception to the law of demand in that they suggest an upward-sloping demand curve.
• D) constitutes an exception to the law of supply in that they suggest a downward-sloping supply curve.

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Definitions:

Optimal Quantity

The ideal amount of a good or service that maximizes efficiency or utility, taking into account costs and benefits.

Marginal Curve

Refers to graphs like the marginal cost curve or marginal revenue curve, which show how the cost or revenue changes with an additional unit of output.

Profit-Maximizing Principle

An economic concept that companies aim to achieve where they generate the maximum possible profits by adjusting output levels.

Marginal Benefit

The supplemental value or usefulness derived from using another unit of a good or service.