3.You observe that the quantity sold of VCRs over the last 3 year
has increased but that price has remained roughly constant. The
best explanation for this is:
- The price of televisions has risen and the popularity of VCRs
- The cost of video tape rentals has fallen and consumer tastes
have remained unchanged.
- VCR manufacturing costs have decreased and the popularity of VCRs
- Production technology has remained unchanged and the popularity
of VCRs has increased.
- Manufacturing costs have risen and more and more consumers think
VCRs are only for mindless jerks.
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