Figure 3-1
-If the price of music downloads was to decrease, then
A) the demand for MP3 players would decrease.
B) the demand for MP3 players would increase.
C) the supply of MP3 players would increase.
D) the quantity demanded of MP3 players would decrease.

Question

Figure 3-1 
-If the price of music downloads was to decrease, then
A) the demand for MP3 players would decrease. 
B) the demand for MP3 players would increase. 
C) the supply of MP3 players would increase. 
D) the quantity demanded of MP3 players would decrease.

Quizplus · Accepted Answer

When the price of a complementary good (music downloads) decreases, the demand for the related good (MP3 players) tends to increase as people would require more MP3 players to store and play the music downloaded. Therefore, option B is correct. Option A is incorrect as the demand for MP3 players would increase rather than decrease in this scenario. Option C is incorrect as the supply of MP3 players is not directly affected by the decrease in the price of music downloads. Option D is incorrect as the quantity demanded of MP3 players would increase rather than decrease.

Figure 3-1 -If the Price of Music Downloads Was to Decrease, Then