Discussion: In case of the total revenue from the sale of DVD playersÃ¢â‚¬â„¢ rises, in spite of the price of the DVD declining by 20%, it shows that the price elasticity related to the DVD is high. A fall in the price of the DVDÃ¢â‚¬â„¢s has led to an increase in the sales of the DVD players. The price reduction does not necessarily lead to an increase in profits for DVD playersÃ¢â‚¬â„¢ manufacturers. This purely depends on the reduction in margin compared to the increase in sales. Question 1: What do you think would happen to sale and price of DVDs after this?”
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