What can explain the fact that DVD players decreased in price during the 1990s even as more DVD players were being sold?
A) The demand for DVDs was declining.
B) The supply of DVD players was decreasing.
C) The supply of DVD players was increasing more than the demand for DVD players.
D) The demand for DVD players was increasing more than the supply of DVD players.

Question

Quizplus · Accepted Answer

When the supply of a product increases more than the demand, the price tends to decrease. In this case, even as more DVD players were being sold, the supply of DVD players was increasing, which caused the price to decrease.

What Can Explain the Fact That DVD Players Decreased in Price