Figure 3-8
-Blu-ray players were introduced to the market in 2006, and new technology has allowed for the cost of manufacturing the players to decline significantly since the initial introduction. How did this change in technology affect the market for Blu-ray players?
A) The new technology caused an increase in the supply of Blu-ray players and a decrease in price of Blu-ray players.
B) The new technology caused an increase in the supply of Blu-ray players and an increase in price of Blu-ray players.
C) The new technology caused a decrease in the demand for Blu-ray players.
D) The new technology caused an increase in the quantity of Blu-ray players supplied.

Question

Figure 3-8 
-Blu-ray players were introduced to the market in 2006, and new technology has allowed for the cost of manufacturing the players to decline significantly since the initial introduction. How did this change in technology affect the market for Blu-ray players?
A) The new technology caused an increase in the supply of Blu-ray players and a decrease in price of Blu-ray players. 
B) The new technology caused an increase in the supply of Blu-ray players and an increase in price of Blu-ray players. 
C) The new technology caused a decrease in the demand for Blu-ray players. 
D) The new technology caused an increase in the quantity of Blu-ray players supplied.

Quizplus · Accepted Answer

The introduction of new technology is likely to reduce the cost of manufacturing and thereby increase the supply of Blu-ray players. As supply increases, the price of the players is likely to decrease due to more competition among producers. Thus, choice A is the correct answer. Choice B does not make much sense as an increase in supply should lead to a decrease in price, not an increase. Choice C is not supported by the information given, and it is unlikely that new technology would reduce demand for Blu-ray players. Choice D is a partial answer and does not capture the full effect of the technology change on the market.

Figure 3-8 -Blu-Ray Players Were Introduced to the Market in 2006, and in 2006