Digital video recorders (DVRs) were introduced to the market in 1999, and new technology has allowed for the cost of manufacturing the recorders to decline significantly since the initial introduction. How did this change in technology affect the market for DVRs?
A) The new technology caused an increase in the supply of DVRs and a decrease in price of DVRs.
B) The new technology caused an increase in the supply of DVRs and an increase in price of DVRs.
C) The new technology caused a decrease in the demand for DVRs.
D) The new technology caused an increase in the quantity of DVRs supplied.

Question

Quizplus · Accepted Answer

The new technology allowed for the cost of manufacturing DVRs to decline significantly, which led to an increase in the supply of DVRs due to more companies being able to enter the market and produce them. As a result, consumers benefited from a decrease in the price of DVRs. Therefore, option A is the correct answer.

Digital Video Recorders (DVRs) Were Introduced to the Market in 1999