Author Question: Over the last few years, demand for DVDs has increased, and yet their equilibrium price has fallen. ... (Read 80 times)

kshipps · **on:** Jul 1, 2018

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.

Question 2

If demand decreases and supply increases, price will
a. always increase
b. always decrease
c. increase only if supply increases more than demand decreases
d. increase only if supply increases less than demand decreases
e. decrease only if supply increases more than demand decreases