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Figure: The DVD Rental Market
-(Figure: The DVD Rental Market) Look at the figure The DVD Rental Market. If the rental price of DVDs rises from $5 to $7:

Question

Use the following to answer questions :
Figure: The DVD Rental Market 
-(Figure: The DVD Rental Market) Look at the figure The DVD Rental Market. If the rental price of DVDs rises from $5 to $7:

Quizplus · Accepted Answer

This is because an increase in rental price leads to a decrease in the quantity demanded, as shown by the movement along the demand curve from point A to point B in the figure. The figure also shows that the demand curve shifts to the left from D1 to D2, indicating a decrease in demand from 50 to 30 rentals per weekend in response to the price increase.

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