-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

Quizplus · Accepted Answer

When the price of DVD players increases, the demand for DVDs will decrease because DVD players and DVDs are complementary goods. This decrease in demand is represented by a shift of the demand curve to the left, from D₂ to D₃.

-Suppose That Initially the Market for DVDs Is at Point