Assume that both the demand curve and the supply curve for DVD players shift to the left but the demand curve shifts more than the supply 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 decrease.
D)the equilibrium price of DVD players will increase; the equilibrium quantity may increase or decrease.

Question

Quizplus · Accepted Answer

Both the demand curve and the supply curve shift to the left, but the demand curve shifts more than the supply curve. This means that the equilibrium quantity will decrease. The decrease in demand will also lead to a decrease in the equilibrium price.

Assume That Both the Demand Curve and the Supply Curve