Ask Question
BusinessBusiness
13 June, 11:33

What is the most likely effect of the development of XBOX with DVD capabilities on the DVD player industry? a. decreased price elasticity of demand for the DVD player industry because XBOX are complements b. Increased price elasticity of demand for the DVD player industry because XBOX are substitutes c. Increased price elasticity of demand for the DVD player industry because XBOX are complements d. decreased price elasticity of demand for the DVD player industry because XBOX are substitutes

+3
Answers (1)
  1. 13 June, 12:49
    0
    The correct answer is letter "B": Increased price elasticity of demand for the DVD player industry because XBOX are substitutes.

    Explanation:

    Price elasticity of demand reflects the changes in quantity demanded for a good or service as a result of changes in price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal to or greater than one (1) the demand is elastic. It means a minimum change in price has a major impact on the quantity demanded volume.

    Thus, if XBOX implements DVD features, DVD players will face an increase in their price elasticity of demand because changing DVD players' prices could change their quantity demanded by far because consumers will prefer purchasing an XBOX which is a substitute.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What is the most likely effect of the development of XBOX with DVD capabilities on the DVD player industry? a. decreased price elasticity ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
When is humor beneficial to a team?
Answers (2)
When is it appropriate to use indirect rather than direct strategies when intervening with a guest?
Answers (1)
An arrangement whereby a patient is allowed to leave the hospital, but must live in a halfway house or other supervised setting and report frequently to a mental health agency, is called
Answers (1)
For workers, "going on strike" means Question 7 options: staging public protests of a company's actions. refusing to work until certain demands are met. filing a lawsuit against employers. boycotting products from targeted employers or companies
Answers (1)
The marginal product of labor can be defined as the change in a. profit divided by the change in labor. b. output divided by the change in labor. c. labor divided by the change in output. d. labor divided by the change in total cost.
Answers (1)
New Questions in Business
Which of the following comparisons best isolates the impact of a change in activity on performance?
Answers (1)
If an investor anticipates an annual rental income from a leased property to be $400,000 dollars, this expected sum has a direct bearing on what the investor will pay for the property. This is an example of
Answers (1)
In comparison to industry averages, Okra Corp. has a low inventory turnover, a high current ratio, and an average quick ratio. Which of the following would be the most reasonable inference about Okra Corp.? A. Its current liabilities are too low. B.
Answers (2)
The individual with the highest valuation of the good will win in which of the following auctions? A. Sealed Bid Auction B. English Auction C. Dutch Auction D. All of the above.
Answers (1)
Explain how banks can create money.
Answers (1)
Home » Business » What is the most likely effect of the development of XBOX with DVD capabilities on the DVD player industry? a. decreased price elasticity of demand for the DVD player industry because XBOX are complements b.
Sign Up Forgot Password?