Over the Last Few Years, Demand for DVDs Has Increased

question 112

Multiple Choice

Over the last few years, demand for DVDs has increased, and yet their equilibrium price has fallen.Which of the following best explains this situation?

• A)When the price falls, the quantity supplied increases.
• B)There has been a shortage of DVDs.
• C)The supply of DVDs must have decreased.
• D)The demand curve for DVDs slopes upward, so an increase in demand leads to a lower price.
• E)The supply of DVDs must have increased more than the demand for DVDs increased.

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Definitions:

Reciprocal Liking

The phenomena where people tend to like others who like them in return.

Primacy Effect

The cognitive phenomenon where individuals are more likely to remember and give more weight to information that is presented first in a series.

Matching Hypothesis

The notion that people tend to have lovers or spouses who are similar to themselves in physical attractiveness and other assets.

Conformity

is the act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.