Figure 3-7 -Suppose That the Market for DVDs Is Initially at Point

question 74

Multiple Choice

Figure 3-7

-Suppose that the market for DVDs is initially at point A on demand curve D₂ in Figure 3-7.If there is a decrease in the price of DVDs,

• A) the demand curve will shift to D₂
• B) equilibrium will move to point B on demand curve D₁
• C) equilibrium will move to point C on demand curve D₁
• D) there will be no change from point A
• E) the demand curve will shift to D₃

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Definitions:

Break-even

The breakpoint where total incomes are equivalent to total expenditures, yielding no profit or loss.

Monthly Unit Sales

The total number of units of a product sold by a company in a month.

Unit Sales

The quantity of products sold or services rendered to customers in a specific period.

Target Profit

The desired net income that a company aims to achieve within a specific time period.