What Can Explain the Fact That DVD Players Decreased in Price

question 27

Multiple Choice

What can explain the fact that DVD players decreased in price during the 1990s even as more DVD players were being sold?

• A) The demand for DVDs was declining.
• B) The supply of DVD players was decreasing.
• C) The supply of DVD players was increasing more than the demand for DVD players.
• D) The demand for DVD players was increasing more than the supply of DVD players.

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Definitions:

Liability

Obligations or debts that a business owes to external parties, which need to be settled over time through the transfer of economic benefits.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned.

Share Capital

The total amount of money that a company has raised from investors through the sale of shares.