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