2. Figure: Four Markets for DVDs Rental Rental price price of DVD of DVD $10 $10

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2. Figure: Four Markets for DVDs Rental Rental price price of DVD of DVD $10 $10 20 40 60 80 00 20 40 60 80 00 Quantity of DVDs (per weekend) Quantity of DVDs (per weekend) Rental Rental price price of DVD of DVD $10 $10 20 40 60 80 00 20 40 60 80 00 Quantity of DVDs (per weekend) Quantity of DVDs (per weekend) Reference: Ref 7-4 (Figure: Four Market fo DVD ne the figure Four Markets fo producing DVDs falls? A DVD graphs illustrates what the market for If D S1 is the original curve and D2 or S2 is the new of the happ DVDs if the cost of curve, which may 1 or en in

Explanation / Answer

C

B

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