Assume That the Demand Curve for MP3 Players Shifts to the Right

question 66

Multiple Choice

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left, but the supply curve shifts more than the demand curve.As a result

• A)both the equilibrium price and quantity of MP3 players will decrease.
• B)the equilibrium price of MP3 players will decrease; the equilibrium quantity will increase.
• C)the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease.
• D)the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.

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Definitions:

Points Of Difference

Those characteristics of a product that make it superior to competitive substitutes.

Discontinuous Innovation

A type of innovation that represents a significant breakthrough, creating entirely new markets or drastically changing existing ones.

LCD

Stands for Liquid Crystal Display, a type of flat-panel display technology commonly used in TVs, computer monitors, and mobile device screens.

High-Definition TV

A television system providing a higher resolution than standard-definition television (SDTV), offering viewers clearer and more detailed images.