Assume that the demand curve for DVD players shifts to the left and the supply curve for DVD players shifts to the right,but the supply curve shifts less than the demand curve.As a result
A)both the equilibrium price and quantity of DVD players will decrease.
B)the equilibrium price of DVD players will decrease; the equilibrium quantity may increase or decrease.
C)the equilibrium price of DVD players may increase or decrease; the equilibrium quantity will increase.
D)the equilibrium price of DVD players will decrease; the equilibrium quantity will increase.

Question

Quizplus · Accepted Answer

When the demand curve shifts to the left, it indicates a decrease in demand, and when the supply curve shifts to the right, it indicates an increase in supply. However, since the demand curve shifts more than the supply curve, the dominant effect is a decrease in both the equilibrium price and quantity of DVD players.

Assume That the Demand Curve for DVD Players Shifts to the Left