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A projector lamp operates by sending an electrical current across an ARC gap that is full of ultra-high pressurized mercury vapor. The electricity lights the mercury vapor which then causes the lamp to emit a light with an extreme intensity or brightness. The bright light created by this process shines onto an LCD (Liquid Crystal Display) or DLP panel which then in turn produces the fantastic images projectors are known for.
Projector lamps are produced by a extremely complex technology that is very costly to manufacturer, therefore the price of projector lamps tends to be pretty high.