An Increase in Both the Equilibrium Price and the Equilibrium

question 17

Multiple Choice

An increase in both the equilibrium price and the equilibrium quantity of DVD players is best explained by:

• A)an increase in the demand for DVD players.
• B)an increase in the supply of DVD players.
• C)a decrease in the supply of DVD players.
• D)a decrease in the demand for DVD players.

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Definitions:

Subcontracting

The practice of assigning or outsourcing part of the obligations and tasks of a contract to another party, often used to leverage specialized skills or cost advantages.

Inventory

The total amount of goods or materials held in stock by a business, available for sale or use in production.

Stockouts

Occurs when a product is not available in inventory for sale or use, leading to potential loss of sales and customer dissatisfaction.

Hybrid Strategies

Business tactics that combine elements of different traditional strategies, such as cost leadership and differentiation, to achieve competitive advantage.