Asked by Aaron Silver on Jul 28, 2024
Verified
Suppose the price of compact disks (CDs) increases,other things equal.Which of these is most likely to occur in the market for DVDs,a substitute?
A) The demand for DVDs is likely to decrease.
B) The demand for DVDs is likely to increase.
C) The quantity of DVDs demanded is likely to increase.
D) A decrease in the quantity of DVDs demanded is likely to decrease.
E) A decrease in the quantity of DVDs supplied is likely to decrease.
Compact Disks
Optical storage media used to store data, including music and software, now largely superseded by digital formats.
Substitute
A product or service that can be used in place of another to satisfy consumer demand.
- Familiarize oneself with the repercussions that changes in demand have on market harmony.
- Examine the impact of alterations in elements that affect demand and supply on the outcomes in market dynamics.
Verified Answer
PS
Patrycja SzymikJul 31, 2024
Final Answer :
B
Explanation :
As the price of CDs increases, consumers are likely to switch to DVDs, as they are considered a substitute for CDs. This would lead to an increase in the demand for DVDs, making option B the correct choice.
Learning Objectives
- Familiarize oneself with the repercussions that changes in demand have on market harmony.
- Examine the impact of alterations in elements that affect demand and supply on the outcomes in market dynamics.