"Value pricing" stresses the importance of product differentiation

Refer to Table 23-10. Using the table above, calculate the unplanned change in inventories for each level of GDP, and explain what will happen to GDP?

What will be an ideal response?

DVDs can be produced at a constant marginal cost of $5 per disk, and Roaring Lion Studios is releasing the DVDs for its last two major films. The DVD for Rambeau 17 is priced at $20 per disk, and the DVD for Schreck 10 is priced at $30 per disk

What are the price elasticities of demand for these two movies? A) Both equal -1.2. B) -0.75 and -5/6, respectively C) -1.33 and -1.2, respectively D) -1.33 and -2, respectively