How Does the Increasing Use of MP3 Players Affect the Market

question 49

Multiple Choice

How does the increasing use of MP3 players affect the market for compact discs?

• A)The demand curve for compact discs shifts to the right.
• B)The supply curve for compact discs shifts to the left.
• C)The supply curve for compact discs shifts to the right.
• D)The demand curve for compact discs shifts to the left.

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Definitions:

Complements

Products that are usually consumed jointly (for example, bread and butter, hot dogs and hot dog buns). A decrease in the price of one will cause an increase in demand for the other.

Consumption

The use of goods and services by households or individuals, typically relating to how these actions affect economic demand.

Market Demand

The total amount of a product or service that all consumers in a market are willing and able to purchase at various prices.

Individual Demands

The demand for goods and services by an individual consumer, based on their preferences, income, and prices.