Figure 4-4 -Refer to Figure 4-4.Which of the Following Would Cause the Following

question 251

Multiple Choice

Figure 4-4

-Refer to Figure 4-4.Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for DVDs in the United States?

• A) a decrease in the price of DVDs
• B) a decrease in the price of DVD players
• C) a change in consumer preferences toward watching movies in movie theaters rather than at home
• D) a decrease in the number of people in the United States

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Definitions:

Income Elasticity

A measure of how much the demand for a good changes in response to a change in consumer income.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time.

Cross-Price Elasticity

The responsiveness level of the quantity of a product needed when there's a fluctuation in the price of another product.

Cross-Price Elasticity

An assessment of how changes in the price of one good affect the demand for another good.