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 more 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 more significantly, it indicates an increase in supply. The larger shift in supply compared to demand will lead to a decrease in the equilibrium price due to excess supply. The equilibrium quantity will increase because the increase in supply outweighs the decrease in demand.

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