Holding everything else constant, an increase in the price of MP3 players will result in
A)a decrease in the quantity of MP3 players supplied.
B)a decrease in the demand for MP3 players.
C)an increase in the supply of MP3 players.
D)a decrease in the quantity of MP3 players demanded.

Question

Quizplus · Accepted Answer

An increase in the price of MP3 players will result in a decrease in the quantity of MP3 players demanded, as consumers will be less willing and able to purchase MP3 players at a higher price. This is a movement along the demand curve, not a shift in the demand curve itself. The supply of MP3 players will remain unchanged in this scenario.

Holding Everything Else Constant, an Increase in the Price of MP3