Consider the Market for New DVDs

question 151

Multiple Choice

Consider the market for new DVDs.If DVD players became cheaper,buyers expected DVD prices to fall next year,used DVDs became more expensive,and DVD production technology improved,then the equilibrium price of a new DVD would

• A)rise.
• B)fall.
• C)stay the same.
• D)could rise,fall,or remain unchanged.

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Definitions:

Cost of Goods Sold

Costs directly related to the fabrication of goods a business sells, incorporating both materials and labor.

LIFO Inventory Valuation

An inventory costing method that assumes the last items placed in inventory are the first ones sold.

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management.

Sales Revenue

Sales revenue refers to the income received from the sale of goods or services before any costs or expenses are deducted, serving as a primary source of business income.