If the demand for CD players decreases and the supply of CD players decreases, then
A)it is clear that prices will decrease, the change in the quantity of CD players sold is ambiguous.
B)it is clear that prices will increase, the change in the quantity of CD players sold is ambiguous.
C)it is clear that quantity sold will decrease, the change in the price of CD players is ambiguous.
D)it is clear that change in quantity sold is ambiguous, the change in the price of CD players is ambiguous.

Question

Quizplus · Accepted Answer

When both demand and supply decrease, the quantity sold will definitely decrease because there are fewer buyers and fewer products available. However, the effect on price is ambiguous because the decrease in demand tends to lower prices, while the decrease in supply tends to raise prices.

If the Demand for CD Players Decreases and the Supply