Over the Last Few Years, Demand for DVDs Has Increased

question 112

Multiple Choice

Over the last few years, demand for DVDs has increased, and yet their equilibrium price has fallen.Which of the following best explains this situation?

• A)When the price falls, the quantity supplied increases.
• B)There has been a shortage of DVDs.
• C)The supply of DVDs must have decreased.
• D)The demand curve for DVDs slopes upward, so an increase in demand leads to a lower price.
• E)The supply of DVDs must have increased more than the demand for DVDs increased.

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