"The Price of Digital Cameras Fell Because of Improvements in Production

question 196

Multiple Choice

"The price of digital cameras fell because of improvements in production technology.As a result, the demand for film cameras decreased.This caused the price of film cameras to fall; as the price of film cameras fell, the demand for film cameras decreased even further." Evaluate this statement.

• A)The statement is false because the demand for film cameras would increase as the price of digital cameras fell.
• B)The statement is false.A decrease in the price of digital cameras would decrease the demand for film cameras, but a decrease in the price of film cameras would not cause the demand for film cameras to decrease.
• C)The statement is false because it confuses the law of demand with the law of supply.
• D)The statement is false because digital camera producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits.

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Definitions:

Inherited

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Natural physical, mental, and behavioral changes that follow a 24-hour cycle, influencing sleep, wakefulness, and other bodily functions.

Alcohol Use

The consumption of beverages containing ethanol, which can range from moderate drinking to alcohol abuse and dependence.

Hostility

A state of anger and aggression towards others, often resulting from frustration or perceived threats.