Using Supply and Demand to Analyze Markets $-$ End of Chapter Problem

In $1997,$ Sony introduced the DVD player, replacing the VHS videotape and shepherding in a new era of high$-$definition movie viewing. Soon, there were over $100$ different player models competing. DVD became the standard, preferred way to watch movies at home; VHS movies became increasingly difficult to rent and$/$or purchase. Then, in $2010,$ Netflix introduced streaming video that allowed users to watch movies on their television or mobile device.

Because DVD buyers valued the product at much less than the price they paid.

Because DVD producers were receiving more than the cost of production.

Because DVD buyers valued the product at much more than the price they paid.

Because DVD producers were receiving less than the cost of production.