A Shift of the Supply Curve of DVDs Raises the Price

question 148

Multiple Choice

A shift of the supply curve of DVDs raises the price of a DVD from $9.50 to $10.50 and reduces the quantity demanded from 41 million to 39 million DVDs a month. The price elasticity of demand for DVDs is

• A) 0.5.
• B) $2 per 2 million DVDs a month.
• C) 2.0.
• D) 2 million DVDs a month per dollar.

---

Definitions:

Implementation Phase

the stage in a project or plan where strategies are executed or applied to achieve the intended outcomes.

Advertising Firms

Companies specializing in creating, planning, and handling advertising and sometimes other forms of promotion and marketing for its clients.

Planning Phase

The planning phase involves the initial stages of a project or strategic plan where goals are defined, strategies are developed, and tasks are allocated.

IMC Program

Integrated Marketing Communications program, a strategic approach to planning and executing all aspects of marketing communication consistently across multiple platforms.