In 2001,the Prices of VHS Movie Tapes Were Practically Identical

question 119

Multiple Choice

In 2001,the prices of VHS movie tapes were practically identical while DVD prices for different movie titles varied considerably.What explanation can be given for this?

• A)In 2001,VHS tapes were inferior goods while DVDs were luxuries.
• B)In 2001,most VHS tapes were sold by discount retailers such as Wal-Mart; most DVDs were sold online.
• C)In 2001,the price elasticity demand for VHS tapes was inelastic; for DVDs the price elasticity of demand was elastic.
• D)In 2001,movie studies had determined their pricing strategies for VHS tapes but were unsure of the price elasticities of DVDs.

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Definitions:

Organ Systems

Groups of organs working together to perform complex functions necessary for life, such as the digestive or respiratory systems.

Life Expectancy

The average period that an individual is expected to live, often calculated based on statistical averages of age, gender, and other factors in a given population.

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High-energy electromagnetic waves emitted from atomic nuclei during radioactive decay, with applications in medical treatment and imaging.

Radiation

The emission of energy as electromagnetic waves or as moving subatomic particles, especially high-energy particles that cause ionization.