Which of the following would cause an unambiguous decrease in the real price of DVD players?
A) A shift to the right in the supply curve for DVD players and a shift to the right in the demand curve for DVD players
B) A shift to the right in the supply curve for DVD players and a shift to the left in the demand curve for DVD players
C) A shift to the left in the supply curve for DVD players and a shift to the right in the demand curve for DVD players
D) A shift to the left in the supply curve for DVD players and a shift to the left in the demand curve for DVD players

Question

Quizplus · Accepted Answer

A shift to the right in the supply curve for DVD players means that there is an increase in the quantity supplied of DVD players. A shift to the left in the demand curve for DVD players means that there is a decrease in the quantity demanded of DVD players.

If both of these shifts were to occur simultaneously, the net effect on the real price of DVD players would be ambiguous. However, in choice B, the shift in the supply curve would decrease the price of DVD players, while the shift in the demand curve would decrease the quantity demanded but not necessarily the price. Therefore, the only unambiguous effect on the real price of DVD players would be a decrease, making choice B the correct answer.

Which of the Following Would Cause an Unambiguous Decrease in the Real