Question

Assume the market for DVD movies is initially at equilibrium. A decrease in the price of streamed movies, a substitute for DVD movies, will __________ the equilibrium price and ___________ the equilibrium quantity of DVD movies.

Answer 1

Answer:

The answer is "decrease; decrease".

Explanation:

DVD movies are used to short and a digital portable digital video, It uses a disc that stores much more data as compared to CD.

• It is widely used for films and other data storage and display.
• It decreases the streaming video costs, as substitution for DVD videos, would increase the average demand and high the surplus in DVD films.