Which of the Following Would Be Most Likely to Cause

question 153

Multiple Choice

Which of the following would be most likely to cause a reduction in the supply of Nintendo video games?

• A)a decrease in the price of Nintendo video games
• B)a decrease in the price of computer chips used to make Nintendo games
• C)an increase in the demand for Nintendo video games
• D)a decrease in the demand for Nintendo video games
• E)an increase in the price of computer chips used to make Nintendo games

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Definitions:

Relatively Elastic

Refers to a scenario in which the demand or supply for a product or service greatly alters due to variations in its price.

Marginal Revenue

The extra revenue produced by the sale of an additional unit of a product or service.

Relatively Elastic

A characteristic of a good or service with a demand that is sensitive to changes in price, meaning that small changes in price lead to larger changes in quantity demanded.

Marginal Revenue

The surplus earnings obtained from the sale of one extra unit of a product or service.