Assume that Figure 4-4 shows demand for MP3 players. An increase in the price of music downloads changes demand from A) D ₁ to D ₂ . B) D ₂ to D ₁ . C) D ₂ to D ₃ . D) D ₁ to D ₃ .

Question

Quizplus · Accepted Answer

An increase in the price of music downloads would decrease the demand for MP3 players, shifting the demand curve to the left. This means that at any given price, consumers will demand less MP3 players. Therefore, the new demand curve would be D ₂.

Assume That Figure 4-4 Shows Demand for MP3 Players