Say the price of MP3 songs increases. Other things equal the:

Question

Quizplus · Accepted Answer

The increase in price will lead to a decrease in the quantity demanded of MP3 songs, as consumers will be less willing and able to purchase them at the higher price. This is a movement along the demand curve, rather than a shift in the demand curve itself, since other factors that affect demand (such as consumer tastes and preferences) are assumed to remain constant. Therefore, the correct answer is B, as the quantity demanded for MP3 songs will decrease. The other choices are not relevant, as they pertain to supply or overall demand, which are not affected by changes in price alone.

Say the Price of MP3 Songs Increases