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Figure: Four Markets for DVDs
-(Figure: Four Markets for DVDs) Look at the figure Four Markets for DVDs. Which of the graphs illustrates what may happen in the market for DVDs if D₁ or S₁ is the original curve and D₂ or S₂ is the new curve and if the cost of producing DVDs falls?

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Figure: Four Markets for DVDs

-(Figure: Four Markets for DVDs) Look at the figure Four Markets for DVDs. Which of the graphs illustrates what may happen in the market for DVDs if D₁ or S₁ is the original curve and D₂ or S₂ is the new curve and if the cost of producing DVDs falls?

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D shows an increase in quantity demanded and a decrease in quantity supplied, which matches the scenario of a decrease in production costs leading to a shift in the curve to the right (D₁ to D₂ or S₁ to S₂) and an increase in equilibrium quantity. A, B, and C do not demonstrate this shift in both supply and demand.

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