Question

In the 1980s and 1990s, movie-rental stores offered videotape and DVD rentals to consumers. By the early 2000s, companies were offering movie downloads from the internet. The demand for videotapes and DVDs dropped. What does this scenario best illustrate?

A the effect of limited supply on demand
B the effect of seasonal demand on goods
C the effect of consumer interests on demand
D the effect of outdated technology on demand​

Answer 1

The scenario described best illustrates option D, the effect of outdated technology on demand. The advent of movie downloads from the internet made the existing technology of videotapes and DVDs outdated, leading to a drop in demand for those products.