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

question 69

Multiple Choice

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

• A) both the equilibrium price and quantity of MP3 players will decrease.
• B) both the equilibrium price and quantity of MP3 players 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.

---

Definitions:

Takeover's Threat

Takeover's threat refers to the risk of an unsolicited attempt by one company to gain control of another by acquiring its shares.

Go Private

The process by which a publicly traded company is transformed into a privately held entity, often through the purchase of all outstanding shares.

Complying With Rules

The act of following guidelines, regulations, or standards that have been set by an authority or governing body.

Majority Shareholders

Individuals or entities that own more than half of a company's shares, thus holding significant influence or control.