What will happen if the price of CD players decreases the demand - ProProfs Discuss
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What will happen if the price of CD players decreases the demand curve for compact discs slopes downwards, and the supply curve slopes upwards(in the graph below)?

What will happen if the price of  CD players decreases the demand curve for compact discs slopes downwards, and the supply curve slopes upwards(in the graph below)?<br/>

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Asked by Daulatguru, Last updated: Apr 15, 2024

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4 Answers

John Adney

John Adney

John Adney
John Adney

Answered Jul 30, 2017

The equilibrium price of compact discuss will rise that is what I think

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John Adney

John Adney

John Adney

The equilibrium price will fall.

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oyejr

oyejr

oyejr
I thought a change in own price will only affect the quantity demanded and not demand. Is my thinking worng or incomplete?
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John Smith

John Smith

John Smith
John Smith

Answered Oct 24, 2016

The equilibrium price of compact discs will rise

Clearly CD players are a complementary good to compact discs. So if the price of CD players decreases the demand for them will rise and so too will the demand for compact discs. Hence the demamd curve for discs will shift to the right causing the equilibrium price to rise.
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