Explain this apparent contradiction between theory and fact
Course:- Microeconomics
Reference No.:- EM13700100

Assignment Help >> Microeconomics

Over the years the market demand for “long-playing records made of polyvinyl has fallen considerably as new technologies replaced the old “lp” yet lps are still available for sale and they sell at price points higher (in some cases much higher) than CD’s. According to economic theory when demand falls, the price of a product should fall. Explain this apparent contradiction between theory and fact.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
A major ball field is being considered to be built in a metropolitan by a High Tech company at a cost of $50M. The construction company recommends a major renovation every 50
Suppose that in Wentworth most residents supply factors of production to foreign firms, while producers in Wentworth never employ factors owned by residents of other countri
Explain the three types of goods:  search goods, experience goods and credence goods.  What type of advertising would firms likely use for each type of good and why?
The problem is belongs to Economics. The problem is explain about the challenges that globalization presents to trade unions and how trade unions should respond to such chal
How do you know that cutting the price of Roundup was a good idea for Monsanto - how might you estimate the elasticity of demand and the profit-maximizing price for 1995. Do
If you do not feel it is one hundred percent effective, are there any other monetary policies that may be better? Do you have any ideas of your own concerning a monetary po
What are the costs and benefits of taking this course in microeconomics? Develop a theory of how much a student can be expected to study for this course. How might the stude
Find the equilibrium price and quantity after the shift of the demand curve.If, instead, two new stores that sell T-shirts open up in town, which of the following might be the