Assume that both the demand curve and the supply curve for MP3 players shift to the right but the supply curve shifts more than the demand curve. As a result:
Answer Options:
A) both the equilibrium price and quantity of MP3 players will decrease.
B) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease.
C) the equilibrium price of MP3 players will decrease; the equilibrium quantity will increase.
D) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.
If both the demand curve and the supply curve for MP3 players shift to the right but the supply curve shifts more than the demand curve, the equilibrium price of MP3 players will decrease; the equilibrium quantity will increase.