A Local Businessman Points Out That,as the Price of VCR

question 25

Multiple Choice

A local businessman points out that,as the price of VCR has fallen,sales have increased tremendously.The businessman cites this example as proof that the law of supply does not hold.Which of the following explanations best solves the paradox cited by the businessman?

• A)Demand was decreasing during the period in question.
• B)Demand was stable during the period in question.
• C)Supply was stable during the period in question.
• D)Supply was increasing during the period in question.

---

Definitions:

James-Lange theory

A theory of emotion that suggests that emotions occur as a result of physiological reactions to events.

Emotions

Complex psychological states that involve a subjective experience, a physiological response, and a behavioral or expressive response.

Physical changes

Physical changes are alterations in the form, appearance, or structure of matter that do not change its identity or chemical composition.

Subjective Standard

A criterion for judgment based on personal feelings, tastes, or opinions rather than objective facts or evidence.