If the price of music downloads decreases, which of the following is most likely to occur?
a. Quantity demanded will decrease.
b. Quantity demanded will increase.
c. Demand will increase
d. Demand will decrease.
b
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The big-push theory argues that coordination failures may arise because of
a. pecuniary externalities. b. technological externalities. c. lack of human capital. d. all of the above.
Why might luxury-goods retailers limit purchases on a good by consumers "due to popular demand"?
A) Because they are worried about running out of supply, leaving some of their customers unhappy that they can't buy the good. B) Because they are trying to use scarcity as a way to improve the brand image of the good. C) Because they are limiting the possibility of arbitrage, where consumers buy in a low price area and resell in a higher price area. D) Because they are worried that they'll run out of the good during the all-important holiday season.