If the price of iPods decreases,
A) there will be a movement down along the supply curve for iPods.
B) there will be a rightward shift in the iPod supply curve.
C) there will be a movement up along the supply curve for iPods.
D) the supply curve for iPods shifts leftward.
E) there has been a decrease in the price of iTunes songs.

Question

Quizplus · Accepted Answer

A decrease in price will result in a movement down along the existing supply curve as suppliers will be willing to supply less due to a lower price. This is illustrated by a movement along the supply curve rather than a shift in the curve.

If the Price of IPods Decreases