ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The demand goes up.
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The demand goes down.
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The demand stays the The demand The demand stays the same.
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None of the above
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Detailed explanation-1: -DVD purchases make up 7% of the global home entertainment market, with digital video and streaming services making up the majority of the industry. The DVD market is declining due to the rise of digital video and streaming services.
Detailed explanation-2: -A change in the price of a product causes a movement along its demand curve wherein the quantity demanded of the given product changes. Here, as the price of DVD players decline, its quantity demanded in the market rise, and the demand for DVDs will remain the same.
Detailed explanation-3: -According to The Economics (a website that publishes economic articles), when the price of a substitute good rises, it makes the demand curve of the other product shift right. Therefore, when the price of DVDs rises, the demand for movie tickets will increase.
Detailed explanation-4: -DVD sales have plummeted by 82% in 10 years and are further impacted by new film distribution regulations.