Asked by Madison Cudhea on May 02, 2024
Verified
(Figure: The Blu-ray Disc Rental Market) Use Figure: The Blu-ray Disc Rental Market.At a rental price of $6,there will be:
A) equilibrium in the rental market for Blu-ray discs.
B) a decrease in demand.
C) an excess supply of 20 Blu-ray disc rentals.
D) an excess demand of 20 Blu-ray disc rentals.
Rental Price
The amount of money charged for the temporary use of a property or equipment.
Excess Supply
A market condition where the quantity of a product offered for sale by producers exceeds the quantity demanded by consumers.
Blu-Ray Disc Rentals
The service of providing Blu-Ray discs, which contain high-definition video content, for temporary use to customers for a fee.
- Recognize the factors that result in a surplus or shortage in the market.
- Understand the connection between alterations in price and the quantity of goods demanded or supplied.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
C
Explanation :
At a rental price of $6, the quantity supplied exceeds the quantity demanded, leading to an excess supply of 20 Blu-ray disc rentals. This is because, at this price, sellers are willing to supply more discs than consumers are willing to rent at that price point.
Learning Objectives
- Recognize the factors that result in a surplus or shortage in the market.
- Understand the connection between alterations in price and the quantity of goods demanded or supplied.