If workers who make DVDs get a pay raise, the equilibrium price of a DVD and the equilibrium quantity of DVDs .

Question

Quizplus · Accepted Answer

If workers who make DVDs get a pay raise, the cost of producing DVDs will increase. As a result, the supply curve shifts to the left, and the new equilibrium price will be higher than the initial price. However, the equilibrium quantity will decrease because the higher price will lead to a decrease in consumer demand. Therefore, the correct answer is C, where the equilibrium price rises and the equilibrium quantity decreases.

If Workers Who Make DVDs Get a Pay Raise, the Equilibrium