Holding everything else constant, an increase in the price of MP3 players will result in a decrease in the demand for MP3 players. a decrease in the quantity of MP3 players demanded. O a decrease in the quantity of MP3 players supplied. an increase in the supply of MP3 players.
Holding everything else constant, an increase in the price of MP3 players will result in a decrease in the demand for MP3 players. a decrease in the quantity of MP3 players demanded. O a decrease in the quantity of MP3 players supplied. an increase in the supply of MP3 players.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:**Question:**
Holding everything else constant, an increase in the price of MP3 players will result in
**Options:**
- ○ a decrease in the demand for MP3 players.
- ○ a decrease in the quantity of MP3 players demanded.
- ○ a decrease in the quantity of MP3 players supplied.
- ○ an increase in the supply of MP3 players.
**Explanation:**
This question tests the understanding of basic economic principles related to demand and supply. It focuses on how price changes affect demand and supply quantities, assuming other factors remain the same (ceteris paribus).
- **Demand vs. Quantity Demanded:** An increase in price leads to a decrease in the quantity demanded, not a decrease in demand. "Demand" refers to the entire demand curve, while "quantity demanded" is a specific point on that curve corresponding to a particular price.
- **Supply vs. Quantity Supplied:** Similarly, the term "supply" refers to the entire supply curve. An increase in price generally encourages producers to supply more, moving up the supply curve, thus increasing the quantity supplied—not the overall supply curve.
**Graph/Diagram:** There are no graphs or diagrams associated with this text.
Transcribed Image Text:**Question:**
A decrease in demand for cameras would likely be caused by
**Options:**
- an increase in the price of a substitute good.
- an increase in the price of a complementary good.
- a decrease in the price of cameras.
- an increase in the price of cameras.
**Explanation:**
This question is designed to test understanding of factors that affect market demand. A decrease in demand typically relates to changes in the price or availability of related goods, economic conditions, or consumer preferences. Each option represents a different economic scenario that could potentially influence the market demand for cameras.
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