Figure 3-7

-Suppose that initially the market for DVDs is at point A on demand curve D₂ in Figure 3-7.If the price of DVD players increases,
A) the demand curve will shift to D₃
B) the market will move to point B on demand curve D₁
C) the market will move to point C on demand curve D₁
D) there will be no change from point A
E) the demand curve will shift to D₂

Question

Figure 3-7
 
-Suppose that initially the market for DVDs is at point A on demand curve D₂ in Figure 3-7.If the price of DVD players increases,
A) the demand curve will shift to D₃ 
B) the market will move to point B on demand curve D₁ 
C) the market will move to point C on demand curve D₁ 
D) there will be no change from point A 
E) the demand curve will shift to D₂

Quizplus · Accepted Answer

An increase in the price of DVD players, a complementary good, will decrease the demand for DVDs, causing the demand curve to shift to the left, from D₂ to D₃.

Figure 3-7 -Suppose That Initially the Market for DVDs Is at Point