If the Demand for CD Players Decreases and the Supply

question 126

Multiple Choice

If the demand for CD players decreases and the supply of CD players decreases, then

• A)it is clear that prices will decrease, the change in the quantity of CD players sold is ambiguous.
• B)it is clear that prices will increase, the change in the quantity of CD players sold is ambiguous.
• C)it is clear that quantity sold will decrease, the change in the price of CD players is ambiguous.
• D)it is clear that change in quantity sold is ambiguous, the change in the price of CD players is ambiguous.

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Definitions:

Domestic Consumers

Individuals or households within a country that purchase goods and services for personal use.

Tariffs

Taxes imposed on imported goods, used by governments to regulate trade and protect domestic industries.

Foreign Supplier

An overseas entity that provides goods or services to another company or organization within a different country.

Home Market

The domestic marketplace where goods and services are bought and sold within a country.