Think of a Good Like a Portable Media Device

Multiple Choice

Think of a good like a portable media device. In general, the market price of media devices like portable DVD players, MP3 players, etc. has fallen over the past few years-even though the quantity produced and the quantity consumed have increased. What would be the most likely reason for this?

A) The industry has established a price floor for portable media
B) The demand for portable media has greatly outpaced the supply
C) Production of portable media devices has become cheaper
D) Consumers were not willing to pay high prices for portable media. The industry had to lower prices in order to make a profit.