Mildred and Robert are the only buyers in the market for DVDs. Mildred buys 77 D
ID: 1221688 • Letter: M
Question
Mildred and Robert are the only buyers in the market for DVDs.
Mildred buys 77 DVDs when the price of a DVD is $8.008.00, 55 DVDs when the price of a DVD is $10.0010.00, and 22 DVDs a month when the price of a DVD is $12.0012.00.
Robert buys 1313 DVDs a month when the price of a DVD is $8.008.00, 33 DVDs when the price of a DVD is $10.0010.00, and zero DVDs when the price of a DVD is $12.0012.00.
In the market for DVDs, the quantity demanded _______.
A.at $8.008.00 a DVD is less than the quantity demanded at $10.0010.00 a DVD
B.increases as the price falls
C.increases as the price rises
D.at $10.0010.00 a DVD is 55 DVDs a month
E.at $10.0010.00 a DVD is 33 DVDs a month
Explanation / Answer
In the market for DVDs, the quantity demanded
B.increases as the price falls.
This is because as you see at price $12.0012.00 total market demand for DVD is 22 units,
at price $10.0010.00 total demand for DVD is (55 + 33) = 88
And at price $8.008.00 total demand for DVD is (1313 + 77) = 1390.
So as price falls demand for DVD rises.
Option A is not right because at $8.008.00 quantity demand is 1390 which is greater than 88 units demanded at price $10.0010.00.
Option C is wrong because quantity demanded falls as price rises.
Option D is wrong because at $10.0010.00, demand for DVD is 88 units not 55 units.
Option E is wrong because at $10.0010.00, demand for DVD is 88units not 33 units.