How Does the Increasing Use of Digital Cameras Affect the Market

question 24

Multiple Choice

How does the increasing use of digital cameras affect the market for traditional camera film?

• A)The demand curve for traditional camera film shifts to the right.
• B)The quantity of traditional camera film demanded decreases.
• C)The quantity of traditional camera film demanded increases.
• D)The demand curve for traditional camera film shifts to the left.

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Definitions:

Sunk Costs

Sunk costs are expenses that have already been incurred and cannot be recovered.

Opportunity Costs

The forfeiture of possible benefits from different options when selecting one option over the others.

Terminal Cash Flow

The net cash flow received or paid at the end of a project's life, including salvage value and net working capital recovery.

Straight Line

A method of calculating depreciation or amortization by spreading the cost evenly over the useful life of an asset.