Digital Video Recorders (DVRs)were Introduced to the Market in 1999,and

question 228

Multiple Choice

Digital video recorders (DVRs) were introduced to the market in 1999,and new technology has allowed for the cost of manufacturing the recorders to decline significantly since the initial introduction.How did this change in technology affect the market for DVRs?

• A)The new technology caused an increase in the supply of DVRs and a decrease in price of DVRs.
• B)The new technology caused an increase in the supply of DVRs and an increase in price of DVRs.
• C)The new technology caused an decrease in the demand for DVRs.
• D)The new technology caused an increase in the quantity of DVRs supplied.

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Definitions:

Ending Inventory

The final value of goods available for sale at the end of an accounting period after subtracting the cost of goods sold.

Retail Method

A pricing strategy used in retail to maintain a consistent profit margin by marking up goods based on their wholesale cost.

Retail Method

An accounting method used to estimate ending inventory and cost of goods sold by calculating a cost-to-retail percentage and applying it to the retail price.

Estimated Cost

The anticipated cost to undertake a project or produce a good, used for budgeting and planning purposes.