Some consumer electronics products such as plasma TVs, DVD players, and digital cameras, are introduced at very high prices but over time, their prices start falling (beyond what could be attributed to falling costs as companies take advantage of

economies of scale and cheaper technologies). Which of the following is the best explanation for this observation?
A) Early adopters of these new products typically have a higher demand and higher income compared to those who are willing to wait.
B) More firms are likely to enter the consumer electronics market over time, forcing market prices down.
C) Early adopters are more quality conscious and are willing to pay higher prices for the initial production of these goods.
D) After satisfying the demand for early adopters, firms lower price to attract the more price-sensitive consumers.

D

Economics

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Changes in tax laws in 1993

A) reduced Federal revenues by making the tax code more regressive. B) reduced Federal revenues by making the tax code more progressive. C) increased Federal revenues by making the tax code more regressive. D) increased Federal revenues by making the tax code more progressive.

Economics

The actions of speculators in a market tend to shift the ____ when the price of the good is low and thereby ____ the price

a. demand curve out; raise b. demand curve in; lower c. supply curve out; lower d. supply curve in; raise

Economics